Auditors are required to understand substantive tests and the assertions that impact inventory. Select the procedure that would be conducted in the initial procedure phase of the audit and the related assertion.

Group of answer choices

A$.$Vouch beginning inventory balances to ending balances in the prior year$$s working papers and all assertions would be applicable.

B$.$Vouch beginning inventory balances to ending balances in the prior year$$s working papers and the valuation and allocation assertion would be applicable.

C$.$Observe clients physical count of inventory and the existence and completeness assertions are applicable.

D$.$Read disclosures and independently evaluate their understandability and the classification and understandability assertions are applicable.