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On January 15, 2021, Charm, CPA, was engaged to audit Lee Manufacturing Company's December 31, 2020 financial statements. Lee had taken a physical inventory count on December 31, 2020; the carrying value of final priced inventory was P275,040 (P263,000 in 2019), which represented approximately 20% of the total assets. Charm was unable to satisfy herself as to the inventory quantities through other auditing procedures because of the condition of Lee's inventory records.
Required:
Problem 1: Draft an audit report assuming no other circumstance require departure from a standard audit report.
Problem 2: preapre and audit report
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