You are the audit senior on the audit of Things Pty Ltd, a large manufacturing company, for the year ended 30 June 2020. It is now 25 August 2020 and you are reviewing the audit working papers prepared by the audit assistant, Jennifer Jones, and notice the following matters:

a)Jennifer attended the stocktake on 30 June and observed that the client followed the stocktake instructions. She selected numerous items for test inventory from the client's inventory sheets and all were found to be correct. Cut-off details were noted and subsequently checked and found to be correctly treated. Jennifer concluded that inventory was fairly stated.

b)Jennifer selected 20 invoices to test the control that the sales clerk checks that the prices agree with the authorised price list. She found 3 instances where the sales clerk had not signed the "prices checked" box in the invoice. The sales manager explained that the sales clerk always checks the prices but sometimes forgets to sign the box. As the prices on all the invoices agreed with the authorised price list, Jennifer concluded that the control was operating satisfactorily.

Required:

For each matter, indicate whether you agree that sufficient appropriate audit evidence has been obtained to support the conclusions reached. Discuss three reasons for your decision.