You are the auditor for Peppa Rat, a limited liability company that manufactures and sells small bicycles through the mail. Mr. King and two assistants run the business. Mr. King approves major transactions such as wages and large orders, while one assistant keeps the payables ledger, orders inventory, and pays suppliers, and the other assistant receives customer orders and ships bicycles. Mr. King only comes to the office once a week due to other business obligations. Approximately 100 different types of bicycles are available for purchase at any given time. There are no receivables because all sales are made cash on the spot. Customers pay with credit cards and, on occasion, with cash. The company's annual revenue exceeds $5.2 million. You are planning an audit of Peppa Rat and are considering using some of the audit's evidence-gathering procedures recommended by ISA 500, which are as follows: i) Analytical Procedures ii) Inquiry iii) Inspection iv) Observation v) Recalculation a) For EACH of the above procedures: i) Discuss its use in gathering audit evidence. ii) Illustrate one example for the audit of Peppa Rat iii) Discuss the suitability of each procedure for Peppa Rat, explaining the limitations of each