Your audit assistant Boris Singh prepared the working papers for the audit of inventory for your client Starburst Ltd. Boris undertook a stocktake and found that there were no discrepancies found in the testing. As a result, Boris concluded that Inventory, which is a material balance, was appropriately stated in the financial statements.

Required:

Explain whether Boris has arrived at an appropriate conclusion.

1. Has Boris arrived at an appropriate conclusion yes/no (1 mark)

2. Give reasons for which assertions have not been tested.? (2 mark)

3. Describe how your conclusion for part (a) will impact the further conduct of the audit (if at all). (1 mark