You are reviewing the audit files of Fifties Fashions Ltd, a manufacturer and retailer of retro clothing. In your review of your audit assistant's work on inventory, you note the following:

1. In performing substantive analytical procedures, the audit assistant has used several management

reports supplied by the management accountant. These provided detailed figures, which allowed the assistant to conduct tests such as inventory turnover by product line. The audit assistant followed up all results that differed from those expected, and obtained satisfactory explanations from management. Her overall conclusion was:

Results of analytical review procedures concur with our knowledge of the client's business. Variations from expected results have been satisfactorily explained by the client. These results allow a significant reduction in the tests of details work.

2. To audit the provision for obsolescence, the audit assistant obtained the aged inventory report as at the the end of the reporting period. Because inventory comprises fashi0l1 items and thus becomes obsolete quickly, all inventory items over 6 months old were selected for testing. Any items appearing to be obsolete (e.g. items for which there were no recent orders) were checked to ensure they had been provided for. The audit assistant concluded that all testing showed satisfactory results, and that the provision for obsolescence appeared to be fairly stated.

Required

(a) Outline any queries you would raise with your audit assistant.

(b) Describe the additional audit procedures you believe need to be performed to ensure sufficient appropriate audit evidence is obtained for the two situations.