QUESTION $2(32$ marks$)$ You are the Auditor of Furniture For Future $($Pty$)$ Ltd $($Furniture$),$ a retailer of home and office furniture. Furniture has a financial year end of $30$ June $2025,$ and you are planning on attending the inventory count, which is scheduled for $30$ June $2025.$ Furniture predominantly operates out of a showroom $($and warehouse$)$ in Durban but also holds some inventory at its smaller outlets in Cape Town and Bloemfontein. The majority of the furniture sold by Furniture is manufactured in South Africa, but some of the more expensive lines are imported from Germany and Korea. All imported goods are shipped to the Durban warehouse in containers. At year$-$end, there are likely to be several containers that have been delivered to the warehouse but have not yet been unpacked. Furniture is a well$-$managed business with a sound internal control system. Furniture also holds a large inventory of second$-$hand furniture for sale at its Durban outlet. These items of furniture are taken as trade$-$ins on new furniture, and are given a new lease of life in Furniture$$s workshop. This entails repairing, restoring, and repainting second$-$hand furniture. Each piece of second$-$hand furniture is given a job number, and restoration costs are recorded on a job card. A computerised inventory ledger of secondhand furniture is maintained, with each item having a unique record of its details, including a new serial number, date of trade$-$in$,$ sales$-$agreement number, trade$-$in value, and restoration costs. REQUIRED: $2\mathrm{.}1.$ Assess the risk of material misstatement of the inventory account balance in the financial statements of Furniture For Future $($Pty$)$ Ltd as at $30$ June $2025.$ Consider each of the relevant assertions relating to inventory. $(15$ marks$)$ Communication mark: Clarity of expression $(1$ mark$)$ HAUD$331-1-$Jan$-$Jun$2025-$SA$1-$AA$-$V$5-260220252\mathrm{.}2.$ Design the procedures you will perform to verify the valuation of second$-$hand furniture on hand at $30$ June $2025,$ after having satisfied yourself regarding the existence therefore $($at the inventory count held on $30$ June $2025).(16$ marks$)$