QUESTION TWO [20] You are a senior on the audit team of Maxmed (Pty) Ltd, a company which supplies medical products. You ask a trainee accountant who has just started his training contract what assertions are which relate to the inventory figure of R7 286913 reflected in the financial statements of Maxmed (Pty) Ltd at the financial year end. He replied, "That's easy", Accuracy: the inventory sheets have been correctly totalled and the total is equal to R7 286913. Completenes: all sales and purchases of inventory items hav been taken into account in arriving at the inventory figure of R7 286913. 3 Valuation: Rights: the individual items on the inventory sheets have been valued at the price which the directors believe the item can be sold, within the next twelve months. the figure of R7 286913 does not include inventory which has been used as security for loans taken by Maxmed (Pty) Ltd. Required: Comment on the new trainee's understanding of the assertions relating to inventory