You are the audit senior of Pick & Wear Co is Eco-friendly clothing company and its year end is 31 December 2020. The year-end audit is due to commence shortly, and the following matters have been brought to your attention. Non-current assets

You have obtained an extract of the non-current assets register for the year ended 31 December 2020.

Assets	Purchase date	Useful life	Depreciation method	Cost	Accumulated deprecation	Carrying amount
Equipment	1 January 19	7 years	Straight-line	10,000	2,857	7,143
Computer	1 January 18	3 years	Straight-line	3,000	3,000	0
Machinery	1 June 20	5 years	Straight-line	40,000	4,667	35,333
				53,000	10,524	42,476

Note: Pick & Wear Co uses Cost model as its accounting policy.

Inventory count

An inventory count is to be undertaken at the year end. You are responsible for the audit of inventory and will attend the count as well. Pick & Wear Co has inventory held by third party and which is material to the financial statements.

The following is an extract of Pick & Wear Cos breakdown of the cost of finished inventory for the year ended 31 December 2020.

Inventory code	Quantity ($)	Raw material ($)	Labour cost ($)	Total cost ($)
IN1200	1,000	5,200	1,100	6,300
IN1201	2,000	10,201	3,020	13,221
IN1202	350	3,212	720	3,932
IN1203	2,400	10,450	3,400	13,850
IN1204	500	4,001	901	4,902

Required:

Describe audit procedures you would perform during the audit of Pick & Wear Co:

1. Substantive procedures in relation to non-current assets. (9 marks)
2. Substantive procedures in relation to finished inventory. (9 marks)
3. Substantive procedures in relation to Inventory held by third party. (8 marks)