Up to 1 mark per well explained procedure.

Attend one of the continuous (perpetual) inventory counts to review whether the controls are adequate
Review the schedule of counts to confirm completeness of all inventory lines 
Review the adjustments made to the inventory records to gain an understanding of the level of differences arising
If significant differences, discuss with management how they will ensure that year-end inventory will not be under or overstated 
Attend the inventory count at the year end to undertake test counts to confirm the completeness and existence of inventory

Max marks 3