Your firm has recently been appointed as auditor to Danish, a private company that runs a chain of small supermarkets selling fresh and frozen food, and canned and dry food. Danish has very few...

Extracted text: Your firm has recently been appointed as auditor to Danish, a private company that runs a chain of small supermarkets selling fresh and frozen food, and canned and dry food. Danish has very few controls over inventory because the company trusts local managers to make good decisions regarding the purchase, sale and control of inventory, all of which is done locally. What will your objectives in regards to the internal control system of the company? Which steps you will take to evaluate the internal control system of the company?