Determine the list of major deficiencies in the audit

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The main cause of the misstatement was the inclusion of obsolete items in inventory (especially in the new division), errors in pricing due to a fault in the inventory valuation program in the new computer system, and the inclusion of non-existent inventory in the final inventory listing. The new financial controller had intentionally overstated the inventory to compensate for the reduction in sales volume from the preceding year. Errors were also found in the computer report of obsolete items produced for Warren by the IT manager.

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Question 1: List the major deficiencies in the audit, and state why they took place.

Reference no: EM132567914

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