The auditor is planning for the audit of a specialty retail store. Inventory is material, and items range in value from $1 to over $500. The nature of the store means that the type of merchandise changes every season, and many items are specially ordered with special branding and promotional packaging. Orders are placed six months in advance from overseas suppliers. Large deposits are required to be paid when orders are placed. The auditor believes that the account balances for inventory and prepayments are at risk of material misstatement. 

Required 

(a) Identify the key assertions at risk in relation to inventory and prepayments. 

(b) For each assertion in (a), identify a type of evidence that would be persuasive.