The client has taken a complete physical inventory at year-end, and you have observed the inventory, taken test counts, accounted for tag sequencing, and so on. You are confident that the client took a good count, and you have observed all significant inventories. The client has three major product lines: One is quite old and susceptible to new competition, one is in the mainstream, and one has just been introduced. The relative sales and inventory levels for the three product lines are as follows:

Required:
Write, in good form, an audit program to complete the audit of inventory. You may assume the client has computerized records, and you have access to generalized audit software. You tested internal control and evaluated control risk as low to moderate.

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Sales during past year Inventory at year-end Prod. Line 1 Prod. Line 2 Prod. Line 3 25% 65% 10% 40% 40% 20%