You have now become an audit senior, and in the course of your first audit (with your team behind you – metaphorically), you uncover something disturbing with the computer processing company (Computers R Us (CUR)). While reviewing the inventory (an item that is 30% of the balance sheet) you cannot reconcile the total numbers. Also, when doing an in depth inspection, you notice the items in the boxes do NOT match the boxes themselves. Before freaking out you go to last year’s audit (done by your company but not by you) and notice that inventory was only observed (not inspected). What is your next step? Explain using the code. Explain the MULTIPLE options.
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