During the planning stage of an audit, the engagement partner and manager tour the assembly facilities of York Chemicals, a manufacturer and supplier of chemical solvents to auto body shops nationwide. Solvent is stored in forty gallon drums stacked by stock number in a warehouse awaiting shipment. Fifty yards from the assembly plant, but within a chain link fence that surrounds the property, is a ditch containing damaged barrels. Seepage is apparent beneath the barrels and on the unpaved roadway leading to the ditch.

Required: 

Identify, and explain the motive for, the key questions an auditor must ask management about the ditch, damaged barrels, and seepage.