Black Label Inc., the client, has inventory at approximately 50 locations in the Philippines. The inventory is difficult to count and can be observed only by traveling by automobile. The internal controls over acquisitions, cash disbursements, and perpetual records are considered effective. This is the fifth year that you have done the audit, and audit results in. the past years have always been excellent. Black Label is in excellent financial condition and is privately held.

How would you conduct the audit in terms of test of controls and substantive tests