Key Topics: Completion, leases, inventory, implications on auditors reports.

Description: This requirement expects you to design audit tests surrounding the correct accounting treatment for new property leases as well as inventory. As part of this you should assess the information in the question against materiality and consider the financial statement implications (i.e. consider if the balances in question could be over or understated). Assuming some of the issues are not resolved as expected, you will also then need to consider the impact of this on the auditors report, thinking about what type of audit opinion will be issued.