You are the Audit manager of the audit of Super Retail Group (SRG) an instore and online retailer. Super Retail Group (ASX: SUL) is the proud owner of four iconic brands: Supercheap Auto, rebel, Boating Camping Fishing (BCF) and Macpac, and is one of Australia and New Zealands largest retailers.

According to SRG, Our powerful brands have established, leading positions in growing high-involvement lifestyle categories of auto, sports and outdoor leisure. We provide our customers and highly engaged eight million active loyalty club members with the option to experience our brands whenever and however they choose whether thats through our network of 698 stores or via our digital capabilities, which we continue to enhance.. SRGs largest assets are inventory and intangible assets.

1. Explain the purpose of substantive testing for inventory and intangible assets describe the substantive procedures you will carry out at year end in order to obtain sufficient audit evidence regarding the assertions of valuation and existence and give examples of the main types of substantive tests for both of these types of assets.

b)Using the information set out above for SRG, discuss the process of determining the number and / or type of inventory items that would be tested using substantive testing procedures