QUESTION #3 (21 Mаrks | 25 Minutes) Yоu аre pаrt оf the audit team fоr Redline Motors Ltd., a mid-sized car dealership. The company’s fiscal year-end is December 31, 2025. During the audit, the following situations and evidence were encountered related to the company’s inventory and fixed assets: 1. The company provided an internally-prepared inventory listing showing all vehicles in stock at year-end, including make, model, and VIN numbers. 2. You performed a physical inspection of a random sample of vehicles in the dealership lot and matched them to the inventory listing. 3. A senior manager verbally confirmed that some vehicles included in the listing are held on consignment from a third-party manufacturer. 4. The company provided purchase invoices for new vehicles acquired in December 2025, which were included in the year-end inventory listing. 5. You obtained a copy of the vehicle inventory valuation report, which applied current market prices from a third-party car valuation service. 6. The CFO informed you that all inventory was classified under “Current Assets” in the year-end balance sheet, with no distinction between owned and consigned vehicles. 7. The fixed asset register includes several showroom renovations completed during the year, supported by supplier invoices and contracts. REQUIRED: 1. For each of the seven situations above, identify the most relevant audit assertion being addressed. (7 Marks) 2. For each situation, assess the reliability of the evidence obtained, based on the Evidence Reliability Scale we discussed in class, and briefly justify your assessment. (14 Marks)