Financial Statement

You are an auditor and a member of an audit team. You will be provided with some financial statements for a company that requires an audit along with background information relating to the company and the industry in which it operates.
The audit partner and manager have asked you to start to prepare for the audit of the company. Within your groups you will meet within your audit teams (outside of the scheduled lesson and tutorial time) and analyse the information you have been provided.
You are required to prepare an audit planning document for the whole audit highlighting the proposed audit strategy and any areas your team considers to be of risk / concern supported by your findings.
In addition the audit partner has asked you to prepare your proposed audit testing schedule for the inventory balance which incorporates the financial statement assertions each test is attempting to address.
Your team will then present this audit plan and testing schedule to the audit partner and manager who may question the reasons behind your conclusions on the overall plan and strategy as well as the rationale behind your proposed testing of the two areas the partner indicated.