Exam $*1$

Alure $1$ :

$3$

Fe $2$

Question a $($a points$)$

When auditing inventory at the balance sheet date, bahe doc chrented the tollowine Floweatery has a hish rish of beving unclerstated. So$,1$ sent comfirmations to all vevidors fo confirm encling inventors This procedure provides the most reliahte eviolevce regwercing the Existence of encling inventory" What woukd be your feeciback to Jake?

Inventory has a high risk of being overstated, not understated. Plysical inspection provides the most reliable evidence regarding the Existence of ending inventory. Moreover, vendors cannot confirm the client's ending inventory balance.

Great work!

Inventory has a high risk of being overstated, not understated. Physical inspection provides the most reliable evidence regarding the Existence of ending inventory. Physically inspecting inventory also provides evidence regarding the assertion of Rights