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AUDITEVIDENCEThefollowingscenariorelatestoquestionsK71-K75YouaretheauditsupervisorofSeagull&Coandarecurrentlyplanningtheauditofyourexisting,EagleHeatingCo(Eagle),fortheyearending31December.Eaglemanufacturesandsellsheatingandplumbingequipmenttoanumberofhomeimprovementstoresacrossthecountry.Eaglehasexperiencedincreasedcompetitionandasaresult,inordertomaintainitscurrentlevelsofsales,ithasdecreasedthesellingpriceofitsproductssignificantly.Thefinancedirectorhasinformedtheauditmanagerthatheexpectsincreasedinventorylevelsattheyearend.Youplantoattendtheyear-endinventorycountofEagle.ThefinancedirectorofEaglehasnotifiedyourmanagerthatoneofEagle'skeycustomershasbeenexperiencingfinaldifficulties.Eaglehasagreedthatthecustomercantakeasix-monthpaymentbreak,afterwhichpaymentswillresume.Thefinance