Traverse CPA Firm is auditing Michigan Industries, a small client and retailer of specialty jewelry in the

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Traverse CPA Firm is auditing Michigan Industries, a small client and retailer of specialty jewelry in the northern United States. An audit manager is preparing to begin the audit of the client's inventory balances, which due to the size of the client and the niche industry in which the client operates are relatively small. As a result of the small inventory balances and population, what approach might the auditor decide to take? The auditor might opt to audit the entire population, due to its specialized nature and the population being smaller. The auditor might decide to use audit data analytics, which is particularly suited to this type of inventory and size of population. The auditor might decide to use a statistical sampling procedure to identify accounts which are more riskier than others. The auditor might decide to adopt a reliance approach, whereby the auditor relies on internal controls and does not directly perform substantive procedures on inventory accounts