Rich Won is an auditor for A&B Partners LLP. He's currently planning the audit of a specialty gift store "Treasures". Inventory is material, and items range if value from $5 to over $500. Merchandise changes every season and many items are specially ordered by the store manager based on trends and popularity. The store also has special branding and promotional packaging. Orders are placed 6 months in advance from overseas suppliers. Large deposits are required to be paid when orders are placed. Rich believes that the account balances for inventory and prepayments are at risk of material misstatement.

Identify the key assertions at risk for inventory and prepayments. For each of the key account assertions, what audit procedure would you perform? What would you want to obtain from the client?