ossible questions/ concern will be raised by the John Smith. What are John Smith's Objectives? Express an opinion as to whether the financial statements present fairly and according to GAAP, in a manner that is consistent with the previous periods. Inventory valuation, advertising, (depreciation, making provisions, re-valuation of assets). What is GAAP/ International GAAP/ IFRS? Inventory? Lower of cost or market Advertising? Expense as in period cost. What exactly can the store manager do to affect income in this area? Inventory? --- Do nothing-when? Write down ---When