You have been assigned to the audit of inventory at Fun Ltd, a distributor of hardware to retailers throughout New Zealand. While planning for the audit, you have obtained the following information:

a) Fun Ltd has 70 warehouses located throughout New Zealand. Warehouses are used on a short-term basis depending on regional demand. The marketing manager has indicated that the hardware market is highly competitive and the ability to deliver product quickly is essential.

b) A follow-up on inventory counts has indicated that at least seven warehouses were not included in the final stocktake procedure as the financial controller was not informed of their existence until after the balance date.

c) Significant problems were experienced during stocktakes in the South Island as Fun Ltd's staff were relatively new and were confused by the stocktake instructions sent out by head office.

d) Inventory is often moved between warehouses in order to cater for stronger demand in particular areas owing to seasonal fluctuations.

Required: Identify THREE financial report assertions (audit objectives) for the audit of inventory at Fun Ltd that you believe would be assessed as high risk. Provide reasons for your decisions.