You are conducting the audit of Advanced Technology Ltd (Advanced Technology) for the year ended 30 June 2019. Advanced Technology is a manufacturer of computer components. Your audit manager has asked you to carry out audit checks on cut-off at year end. Advanced Technology maintains details of stock quantifies on its computer. These stock quantities are updated from goods received notes and sales invoices. Advanced Technology conducts a 'wall-to-wall' count of inventory, whereby all operations cease and they count all inventory in a single stocktake.

You have noted the following risks of potential misstatement:

(i)Due to poor labelling procedures, some empty containers may be included in the inventory count.

(ii)Obsolete and damaged security alarm components may have been overlooked in the warehouse.

(iii)The lower of cost or net realisable value method may have been incorrectly applied.

There are no relevant control activities that could prevent these potential misstatements from occurring.

Required:

(a)Identify the one assertion for each of the situations.

(b)List one procedure that you could use to audit the assertions identified in (a).