Your firm is responsible for the audit of Clarkson Shoe Distribution Centre for the year ended December 31, 2016. You have been assigned to audit the inventory section of the file.

a) Clarkson has 5 warehouses located across Barbados. You alone have been assigned to observe the inventory count being performed at its largest warehouse in Warrens. During the inventory count, several delivery trucks arrived for loading. Express shipments are a normal part of Clarkson's operation and must be dealt with immediately. As a result, employees who were counting stopped to assist in the loading of the trucks. What should you do? (5 marks)

b) One storeroom contained 5,000 items. Of these, you test-counted about 200 items of high value and a few items of low value. Assume that you found a substantial number of counting errors. How do should you proceed? (5 marks)

c) You observe that a batch of inventory of Kwik liquid shoe polish is 5 years old and expired. Whilst inspecting the bottles, you notice that in most of the bottles, some of the liquid has solidified. What action should you take and how is this discovery likely to affect the inventory figure in the balance sheet? (5 marks)

d) During your observations, you notice that many of the prenumbered tags that were used and incorrectly filled out are presently being destroyed and thrown away. Why is this significant to the audit and what action should you take?(5 marks)