Prepare a substantive audit program for inventory balances. The construction of an audit program for inventory balances should begin with an etcplicit recognition of the ve nancial statement assertions. As you write your program, keep these assertions in mind: {1] existence or occurrence, [2] completeness, [3} rights and obligations, {:1} valuation or allocation, and {5} presentation and disclosure. From these assertions, you should derive your specic audit objectives related to inventory balances. Your audit program should address the five nancial statement assertions, as well as any internal control weaknesses you have discovered. In this regard, keep in mindthe six categories of internal control. You may assume that you have satisfied yourself with respect to any assertions not specically mentioned in the narrative. As you write your program, remember the generalized evidencegathering procedures of [l] recalculation, [2] physical observation, [3} conrmation, {4} verbal inquiry, [5) vouching of documents, [E] tracing, [T] scanning, and {3] analytical procedures. Use them to help you write the specific evidence-gathering procedures in your program. Write your program on form AP-S. Use the nancial statement assertions as your major headings. Study the prior year's working papers {31 to {33. Then perform all required audit work on schedules C1 and {32 and write your inventon observation memorandum; reference the memorandum (23. inventory adjustments tat affect accounts payable are deferred until Assignment #6. Adjustments found in inventory that affect both inventory and accounts payable should be included on both the inventory and accounE payable working papers