Decker is auditing the financial statements of Allright Wholesale Sales, Inc., for the year ended December 31, 1999. Allright has been in business for many years, although the company has never been audited. Decker is satisfied that ending inventory is fairly stated in all material respects and is considering alternative procedures to audit management's representations about the beginning inventory, which was not observed.

Allright sells only one product, bottled water, and maintains perpetual inventory records. In addition, Allright takes physical inventory counts monthly. Decker has already confirmed purchases vfith the supplier and has decided to concentrate on the reliability of perpetual inventory records and on analytical procedures to the extent that data within the prior years' unaudited records will allow.
Required: 

Design audit procedures, including analytical procedures, that Decker should apply to evaluate the reliability of perpetual inventory records and to audit the January 1, 1999 inventory.