Tutti-fruity Milky Ltd

Subject:BusinessPrice: Bought3

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Tutti-fruity Milky Ltd. (TEM) manufactures and sells perishable milk products (goes bad/spoil easily). Inventories are sent to the retailers on a weekly basis to ensure that products are fresh. Inventories are sent out on a consignment basis to the retailers, thus inventories that are near the expiry date are returned to TEM. TEM's retailers include local supermarkets, petrol kiosks and corner shops all over the country. The management believes that this allows them to target all market segments. Required: Identify and discuss at least 2 financial report assertions for the audit of inventories at TFM that you believe would be assessed as high risk. Justify your decisions.