Your firm P & M accountants is locally based in Melbourne. One of your audit clients, Tom's Hardware has 50 stores located all over Australia. Their balance date is 30 June 2021 and an annual stocktake will be conducted on that date.

Required:

a)Suggest an audit sampling approach to the attendance, observation and testing of the counts.

b)Identify the most relevant management assertions for the inventory count.

c)Mention how you will deal with Tom's goods held by third parties.