Where would you look for guidance on how to handle this scenario?

Topic 1:
Using the KU library, find an article that talks about auditing inventory. Based on the article and the readings in your text, discuss why the auditing of this financial statement area is so complex. What are the difficulties faced by auditors in the audit of inventory?
*Do not forget to respond to the other topic this week.
Topic 2:
You are a new staff associate on an engagement team that is auditing one of your accounting firm’s biggest clients. While at the client site, you become aware that staff purchases of goods manufactured by the company are authorized by production managers, and then processed outside the accounting system. The proceeds from these sales are used to fund the firm’s annual party.Describe what course of action you would take in this scenario and why. Where would you look for guidance on how to handle this scenario?