Wholesalers Ltd, a continuing audit client, for the year ended
31 January 2012. On 5 January 2012, Desmond observed the tagging and
counting of Costco’s physical inventory and made appropriate test
counts. These test counts have been recorded on a computer file. As in
prior years, Costco gave Desmond two computer files. One file contains
the perpetual (FIFO) records for the year ended 31 January 2012. The
other file represents the physical inventory count on the 5 January
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