You are auditing the financial statements of a public traded company that sells a product that is subject to high degree of market volatility. As a result, there is significant uncertainty as to the proper valuation of the inventory at year-end, which could result in highly material fluctuations in its carrying value. Management's estimates as to the selling price, while deemed appropriate, are difficult to verify and make inventory valuation a high-risk area of the audit.

How does the above matter have an impact on your reporting requirements for this audit engagement?