Question $4(16$ marks$)$

You are an audit senior at Century and Century Audit Form and Associates a medium$-$sized audit firm. Century and Century has several clients in the hospitality and tourism industry. You are currently auditing the Caribbean Pristine Shores Hotel an all$-$inclusive resort in Montego Bay, St$.$ James. Caribbean Pristine Shores resort prides itself in providing the best service including an exquisite dining experience. It has three $(3)$ general restaurants and seven $(7)$ special restaurants.

The hotel food and beverage inventory are some of the best items from countries worldwide. It is extremely costly for Caribbean Pristine Shores to procure and ship its food and beverage inventory to Jamaica. The food inventory is stored in the kitehens and managed by the head chef upon receipt. The goods are stored at a general temperature regardless of the varying refrigeration requirements based on the type of food. The receiving department checks the inventory without supervision before forwarding it to the respective restaurant. There is a cellar in the basement of the resort in which a wide range of wine and other alcoholic and non$-$alcoholic beverages are stored. The cellar is kept open during the day to allow easy access to the inventory. Most items are purchased through long$-$term credit terms with international suppliers and financial institutions. The alcohol and spirits costs are extremely high and food costs are especially high during the summer months.

Required:

$($a$)$ Outline two $(2)$ audit procedures that you the auditor should conduct before and two $(2)$ procedures during the inventory count of the food and beverage at Caribbean Pristine Shores.

$(8$ marks$)$

$($b$)$ You have various concerns about audit risk at Caribbean Pristine Shores. Describe four

$(4)$ audit risks and the affected audit objectives in the case.

$(8$ marks$)$