Your answer is incorrect.

Basille CPA firm is currently working on the audit of Jetta Enterprises and is preparing to begin the audit of the client's inventory

accounts. Jetta Enterprises is a provider of modems and wireless routers in both the individual and commercial markets. Which of the

following may be true of a client in this industry?

The external auditors may wish to consider hiring a specialist to audit the existence assertion of inventory. This is due to

the specialized nature of the client's industry.

The external auditors may wish to consider auditing the population of inventory accounts due to the increased inherent

risk associated with the client's specialized nature.

The external auditors may wish to consider product and inventory obsolescence as part of the auditing of the valuation

assertion associated with inventory.

None of these answer choices are correct.

The cash and cash equivalents accounts of Appleseed Corporation are being audited by Junebug CPA Firm. Junebug has determined

that Appleseed has large amounts of excess cash on hand. Senior management of Appleseed has asked the audit firm for

recommendations for the excess cash. Which of the following would constitute a prudent recommendation by the audit firm?

Appleseed Corporation should consider paying off all low$-$interest rate debt with the excess cash.

Appleseed Corporation should consider leaving the cash where it is as a hedge against future financial risks.

Appleseed Corporation should consider investing excess cash in short$-$term, liquid investments.

None of these answer choices are correct.