Question $8(3$ points$)$

When auditing inventory at the balance sheet date, Jake documented the following. Inventory has a high risk of being understated. So$,$ I sent confirmations to all vendors to confirm ending inventory. This procedure provides the most reliable evidence regarding the Existence of ending inventory." What would be your feedback to Jake?

Inventory has a high risk of being overstated, not understated. Physical inspection provides the most reliable evidence regarding the Existence of ending inventory. Moreover, vendors cannot confirm the client's ending inventory balance.

Great work!

Inventory has a high risk of being overstated, not understated. Physical inspection provides the most reliable evidence regarding the Existence of ending inventory. Physically inspecting inventory also provides evidence regarding the assertion of Rights