An audit report of the Patpat merchandise company contains the following observations:
- Management has not taken corrective action to resolve past engagement observations related to inventory controls. The estimation for the loss on financial statements is $250,000
- Separation of duties is not proper in the supplier payments process. The estimation for the loss on financial statements is $50,000
Required: Which of the appropriate manual audit procedures could be conducted to gather the necessary evidences to support the findings? (Note: please explain clearly the objective of each audit procedures)