Smith is the partner in charge of the audit of Blue Distributing Corporation, a wholesaler that owns one warehouse containing 80 percent of its inventory. Smith is reviewing the working papers that were prepared to support the firm’s opinion on Blue’s financial statements, and Smith wants to be certain essential audit records are well documented.
What substantive procedures should Smith expect to find in the working papers to document management’s assertion about completeness as it relates to the inventory quantities at the end of the year?