Answer the following questions 1. What are the concerns that lead the auditor to physically observe inventory? Do you think observing only a sample of inventory is sufficient? Why or why not? 2. As a part of completing the audit, the auditor must obtai

Answer the following questions

1.      1- What are the concerns that lead the auditor to physically observe inventory? Do you think observing only a sample of inventory is sufficient? Why or why not?

2.      2- As a part of completing the audit, the auditor must obtain a letter from the client's attorney.  Discuss the purpose of this letter and, most importantly, the limitations of such a letter.  What problems does the auditor encounter in getting an accurate and informative letter?  Why?

3.      3-These events take place after the end of field work.  How would the auditor be aware of such events?  What responsibility does he/she have if he/she is not aware of them.  What if the auditor never learns about a fire that destroys the client's inventory after the end of field work, for example?  Should he/she rely on the client for such information?  Is there a better way to do it?

4.      4-What do you think about the procedures implemented by Auditing Standards in case an auditor discovers that he/she missed certain critical audit procedures after the audit report is issued?  Do you think the procedures in place fully address this issue?