Requirement 1: Inventory Using the sample inventory diamond parcel and the sample of individually wrapped certified diamonds provided, familiarize yourself with both the physical diamond inventory and the diamond inventory record for the diamond parcel as well as the wrapped diamonds. Discuss and complete

Answer Template A. As part of your inventory familiarization process, you are required to discuss and provide answers to the following two questions by completing Answer Template A, provided in Exhibit 1. [Note: To assist you in answering the questions, Answer Template A lists the account balance assertions]: (a) Discuss and determine the key Account Balance Assertions that may be at risk for the diamond inventory, and (b) Discuss and determine whether the sample of individually wrapped certified diamonds and the sample inventory parcel, including the inventory record, provides evidence that indicates any specific Account Balance Assertion is at risk for the 20X1 year-end audit.