Trimble and Co

Essay

Trimble and Co., CPAs, has just been retained by the Peterson Company to audit Peterson's financial statement for the last fiscal year. Peterson Company shows substantial amounts of inventory on its balance sheet.
Karen Page has just joined the staff of Trimble and Co. and has been assigned to assist in the audit of Peterson's inventory.
Required:
Identify the major issues regarding the inventory of Peterson Company that Karen needs to consider in determining if Peterson has properly accounted for and reported its inventory.