You are responsible for preparing an audit strategy for the following three independent situations:

(a) Since your last audit the client, Sleek Bicycles Ltd, has introduced a new computer system for inventory. Management has indicated that the main advantage of the new system over the old one is that it is capable of providing information on inventory levels and gross margins for both product line and geographical area.

(b) Your audit strategy for sales for Amazing Creations Ltd places substantial reliance on the system of internal control and the use of analytical procedures. Your testing of the internal control system for sales has found a significant number of instances where customers' credit ratings have not been checked and approval has not been sought when abnormally large discounts have been given. The sales manager states that these changes to control procedures have been the result of difficulties in maintaining past sales levels.

(c) Management of Blue Marine Ltd has recently introduced a new state- of-the art plant and equipment register. AU plant and equipment is now barcoded, scanned and classified, with depreciation calculated automatically based on asset class. A big advantage of the new register is the variety of detailed reports it can produce, for example, depreciation by asset class, additions for the year and profit on disposal.

REQUIRED Outline how the information provided would affect your audit strategy in each case.