In accessing client data, the auditor must consider the completeness and accuracy of the information produced by the entity, as well as the appropriateness of the data for the purposes of the audit.

Required: 

a. What is the total gross inventory included in the Inventory database? 

b. This total does not match what was reported by the client above. Which of the following reasons explain the differences?

Mini-Bullseye Discount (MBD) is a medium-size national retailer with thousands of stores across the United States. MBD sells all types of products, ranging from groceries to pet foods and automotive supplies. Many of MBD’s corporate employees are required as part of their jobs to travel, as well as purchase items on behalf of the company when they are out on jobs. To help with the processing of employee purchases, corporate-level employees are assigned a sequentially numbered purchasing card. Each purchasing card has both an authorized transaction limit, which is set based on the typical expenditures made by the employee, and single transaction limit. Employees are told what their limits are and they know the company policies, but the issuing bank is unable to limit individual transactions beyond a maximum balance placed on the card, which is set to the authorized total annual purchase limit for an employee. Management monitors the use of the cards regularly and follows up on any unusual expenses found.

Reason for Difference i. Some purchases from after fiscal 2023 are included in the database ii. Some purchases from before 2023 are included in the database Number of Instances Total Dollar Amount (positive number)