How significant is inventory to the entity? Link this account to the inherent risk or control risk to explain.

and General audit approach - which procedures will you use: Substantive or Test of Controls (TOC) or both? This is linked to the overall risk of material misstatement.

8.0 WORKING CAPITAL 8.1 Inventory 2021 Finished goods Inventory provisions Retail stock $ 000 413,352 (21,966) 391,386 2020 $ 000 382,380 (36,943) 345,437 Goods in transit from overseas 48,173 65,765 457,151 Inventory 393,610 Inventories are stated at the lower of cost and net realisable value. Cost is calculated using a weighted average method and includes expenditure incurred to purchase the inventory and transport it to its current location. Net realisable value is the estimated selling price of the inventory in the ordinary course of business less costs necessary to make the sale. The cost of inventories consumed during the period are recognised as an expense and included in cost of goods sold in the Income Statement