Wanchai Ltd has adopted accounting policy for inventories where inventories are stated at the lower of cost and net realisable value where raw material is accounted by FIFO method. Work-in-progress and finished goods are comprised of direct materials, direct labour and a proportion of allocated overheads, captured as incurred. Net realisable value is estimated selling prices less any estimated costs to be incurred to completion or disposal. Wanchai Ltd does not adopt standard costing.

(a) Explain the risks of material misstatements about the assertion of "valuation" Wanchai's inventories.

(b) Suggest and discuss 5 audit procedures on inventories based on the assessed risks of material misstatements in (a).