QUESTION $2(25$ marks$)$ You are the Auditor of Dress Up $($Pty$)$ Ltd $($Dress Up$),$ a company that hires both formal wear and dress$-$up costumes for short$-$term use. Dress Up has five stores across South Africa $$ two in Johannesburg and one each in Pretoria, Durban, and Cape Town. Dress Up holds the following categories of inventory for hire in a variety of sizes: $$ Formal evening wear for men $$ Formal evening wear for women $$ Maternity formal wear $$ Halloween costumes for kids $$ Halloween costumes for adults Upon purchase $($by Dress Up$),$ each outfit has a tag attached to the inside with a unique identifier. The details of each outfit include the following: $$ The unique identifier; $$ The category the outfit fits into; $$ The store location of the item; $$ The size of the outfit; $$ A description of the outfit; $$ Whether the outfit is on hand or not; $$ Whether the outfit is available for hire or not at present; and $$ The location of the item; $($being is it currently out on hire, or is it with the dry cleaners, or under repairs, or in store and the store location$)$ These details are captured into Dress Up$$s outfit database. A barcode scanner can scan this unique identifier, which automatically links to Dress Up$$s outfit database. Outfits may not be hired out until the unique identifier is attached and the details are captured in the outfit database. Outfits are generally hired out for $72$ hours, beginning on a Friday afternoon and returning on Monday mornings. However, there are exceptions to this, and additional hire periods are calculated per $24-$hour additional period. There is no discount for people wishing to hire outfits for under $72$ hours. All outfits that are returned on Mondays are ANNEXURE I: FORMATIVE ASSESSMENT $2102$ HAUD$331-1-$Jan$-$Jun$2025-$FA$2-$AA$-$V$5-03022025$ marked as $$not on hand$$ and $$not available for hire$$ as outfits must be dry cleaned and inspected for damage before being marked $$available for hire$$ again. Every Tuesday, all returned outfits are collected by Servingers, a professional drycleaning company that Dress Up has always used. Servingers have a $48-$hour turnaround time on dry$-$cleaning and will usually return Dress Up$$s outfits by Thursday morning each week. Every Thursday afternoon, the outfits returned from Servingers are inspected for damage. Minor damages that the in$-$house seamstress can repair are repaired with no repercussions for the customer. Major damages to outfits that cannot be repaired or stains that cannot be removed result in customers being charged a penalty. Customers who return items with major damages or stains that cannot be removed more than twice over a twelve$-$month period are flagged, and outfit hires to such customers are automatically charged at a $50\%$ premium. Dress Up has a $30$ April $2025$ financial year end. Dress Up prefers to conduct their annual inventory stock counts $($at each of the various locations$)$ on the last day of the financial year. However, management is concerned that this might be difficult, as $30$ April $2025$ is a Wednesday, and therefore, there will be inventory with Servingers for dry$-$cleaning that will be excluded from the inventory count. Furthermore, due to all the public holidays over the last week in April $2025,$ there is a likelihood that outfits hired out might be on hire for $96$ hours or more. In addition, Servingers has communicated that due to the public holidays over this period, they will be operating on a $72-$hour turnaround time for all dry$-$cleaning for the period $14$ April $2025$ to $5$ May $2025.$ REQUIRED: Assume that Dress Up has decided to conduct their annual inventory count on $30$ April $2025.$ Formulate the substantive procedures you would perform around the existence, valuation and completeness of inventory in relation to the following categories of inventory: $$ Inventory that is out for dry$-$cleaning at Servingers on $30$ April $2025$; $$ Inventory that is out for hire on $30$ April $2025$; and ANNEXURE I: FORMATIVE ASSESSMENT $2103$ HAUD$331-1-$Jan$-$Jun$2025-$FA$2-$AA$-$V$5-03022025$ Inventory that has major stains or damage and cannot be repaired on $30$ April $2025.(24$ marks$)$ Communication mark: Layout and structure