a. What alternative procedures can an auditor perform to determine whether the inventory balance is not materially misstated when he or she is appointed in the middle of the year and did not observe the inventory count at the end of the prior year?
b. What alternative procedures can an auditor perform to determine whether the inventory balance is not materially misstated when he or she was appointed after the year end under audit and was not able to observe the count of either the opening or the ending inventory.
c. What are the reporting implications if alternative procedures can be performed and provide sufficient audit evidence in situations (a) and (b) above?
d. What are the reporting implications if alternative procedures cannot be used to satisfy audit evidence requirements in situations (a) and (b) above?