Can someone answer a) please ?

Question Five Total: 20 marks For the following two situations, the auditor is required to develop an audit strategy: 1. The client has inventory at approximately 40 locations in England. 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 past years have always been excellent. The client is in excellent financial condition. II. This is the first year of an audit of a medium-sized company that is considering selling its business because of severe underfinancing. A review of the acquisition payment cycle indicates that controls over cash disbursements are excellent but controls over acquisitions cannot be considered effective. The client lacks receiving reports and a policy as to the proper timing to record acquisitions. When you review the general ledger, you observe that there are many large adjusting entries to correct accounts payable. Required: a) Copy the below table in your answer sheet and fill it in with "E", "M", "S", or "N" regarding the evidence mix used in the above two audits. (10 marks) b) Justify your answers with reference to the audit risk model. (10 marks) PROCEDURES TO OBTAIN AN UNDERSTANDING OF INTERNAL CONTROL TESTS OF CONTROLS SUBSTANTIVE TESTS OF TRANSACTIONS ANALYTICAL PROCEDURES TESTS OF DETAILS OF BALANCES AUDIT 1 2 2 w z E M S N Extensive amount of testing. Medium amount of testing. Small amount of testing. = No testing