You Are Auditing the Financial Statements of a Public Traded

Essay

You are auditing the financial statements of a public traded company that sells a product that is subject to high degree of market volatility.As a result,there is significant uncertainty as to the proper valuation of the inventory at year-end,which could result in highly material fluctuations in its carrying value.Management's estimates as to the selling price,while deemed appropriate,are difficult to verify and make inventory valuation a high risk area of the audit.
How does the above matter would impact on your reporting requirements for this audit engagement?