You are the Audit Manager in charge of auditing your client's financial statements and are supervising a team of four auditors. You are discussing the upcoming audit of your client's inventories with the staff auditor assigned to that portion of the audit. You want to make sure that there is an understanding about the importance of this part of the overall audit. During the discussion, your staff auditor says "If I can determine that all goods in the physical inventory have been accurately counted and properly priced, we will have discharged fully our responsibility with respect to auditing the client's inventory." Evaluate the position taken in this statement and explain why you believe that it is or is not correct. Should you believe that it is not correct, indicate what additional steps, if any, you would advise your auditor to consider while auditing the client's inventory