On January 31, Asare Toy Manufacturing hired your firm to auditthe company's financial statements for the prior year. You wereunable to observe the client's inventory on December 31. However,you were able to satisfy yourself about the inventory balance usingother auditing procedures.f. Gelato Bros., Inc., leases its manufacturing facility from apartnership con-trolled by the chief executive officer and majorshareholder of Gelato. Your review of the lease indicates that therental terms are in excess of rental terms for similar buildings inthe area. The company refuses to disclose this related- partytransaction in the footnotes.g. Johnstone Manufacturing Company has used the double- decliningbalance method to depreciate its machinery. During the currentyear, management switched to the straight- line method because itfelt that it better represented the utilization of the assets. Youconcur with its decision. All information is adequately disclosedin the financial statements.