This assessment task can be undertaken individually or in groups of two. It does require you, if you work in a group, to investigate the same store. This may not be possible if you are both not physically in the same area. The following scenario relates to an imaginary company that is based on Woolworths. You are required to undertake an inspection of a Woolworths store (or similar, such as Coles or IGA – a store that sells various food items and has checkouts) as part of this assessment. Scenario: You are a senior auditor for Large and Complex Auditing. You have been advised that Large and Complex are likely to be appointed the external auditor for The Fresh Food People Pty Ltd, who have applied for listing on the Australian Stock Exchange. While you are waiting to find out whether the appointment will take place, you are undertaking an assessment of the requirements for the inventory count. As part of this process you undertake a site inspection of the local Fresh Food People store and write a memorandum to your team that outlines what you have discovered in your onsite inspection and the known requirements for an inventory count of this nature. In your memorandum you will need to take into account the following matters: · Begin with an overview of the Fresh Food People store you visited. Discuss how long you were there and how many times you visited (You may notice that the location of the store has an influence on the kinds of inventory the store carries). · The kinds of inventory held by the store and the risks associated with each kind of inventory. · Physical security of the inventory. · The processes and procedures you expect management to undertake during the stocktake. · The difficulty of undertaking such a large inventory count, what will be the process you expect to be undertaken by management, in the store and by your team · The difficulty of undertaking a number of inventory counts in the differing localities, since there are a number of Fresh Food People stores throughout Australia, including the larger country towns and major cities. · Finally, you should consider any areas that you have not been able to inspect during your visit onsite. Outline where those areas were and, when you are able to access them, what matters you will need to investigate and the data and information you will need to collect from those areas. Important: When you undertake your onsite inspection, you cannot approach any employee or manager of the store and speak to them. Since your firm has not yet been appointed as external auditors, it would not be appropriate. You may not represent to an employee or manager that you are undertaking research. If you are approached by a member of the store's staff, you may inform the staff that you are university students undertaking a piece of assessment and refer the staff member to the lecturer for clarification. Some points to remember: · Long essays are not required here. This is a memorandum – be concise. The business world is a busy place, full of people with little time. Your ability to keep to the point will be assessed in this task. · It is an accounting assignment and you are required to communicate clearly. Communication is a required skill for accounting graduates. English expression is important and is also an indicator that you understand the purpose of the memorandum – to inform others · Your memorandum should relate to the appropriate accounting and auditing standards.