• Question: Assignment 1Ashton Tate, an in-charge auditor, has completed the year-end physical inventory observation at a large wholesaler of automotive parts. Tate reviewed management's inventory-taking instructions before the start of the physical inventory, made and recorded test counts, observed the controls over the inventory-taking process, and noted no

  Assignment $1$Ashton Tate, an in$-$charge auditor, has completed the year$-$end physical inventory observation at a large wholesaler of automotive parts. Tate reviewed management's inventory$-$taking instructions before the start of the physical inventory, made and recorded test counts, observed the controls over the inventory$-$taking process, and noted no significant exceptions. Tate's subsequent comparisons of the quantities shown on the count sheets with quantities listed on the perpetual inventory records disclosed numerous discrepancies.Required: Other than theft, what are the likely causes of the discrepancies?Assignment $2$After observing a physical inventory, an auditor compared the physical inventory counts with the perpetual inventory records and noted apparent shortages that were materially larger than those found at the end of the previous year.Required:$1.$ Identify possible causes, other than theft, for the differences between the physical counts and the perpetual inventory records.$2.$ Briefly describe potential adverse effects the differences could cause.$3.$ Assuming that theft caused the differences, give recommendations to prevent theft.Assignment $3$LOC Container Corporation is preparing financial statements for the fiscal year ended April $30,2007.$ Because all of LOC Container's shares are traded within state, the company does not file reports with the Securities and Exchange Commission. The company manufactures plastic, glass, and paper containers for sale to food and drink manufacturers and to distributors. LOC maintains separate control accounts for raw materials, work$-$in$-$process, and finished goods inventories for each of the three types of containers. Inventories are valued at the lower of cost or market. The company's fixed assets are classified into the following major classes: land, office buildings, furniture and fixtures, manufacturing facilities, manufacturing equipment, and leasehold improvements. All fixed assets are carried at cost$.$ Depreciation methods vary depending on the type of asset and acquisitiondate. LOC plans to present the inventory and fixed assets at April $30,2007,$ as follows:Inventories $$1,659,609$Property, plant, and equipment $($net of depreciation$)$  $$3,578,475$Required: What information must LOC Container Corporation disclose about inventories and fixed assets in audited financial statements issued to shareholders?