Discuss two financial report assertions for the audit

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ET manufactures and sells mobile smartphones. ET keeps its inventories at least 6 warehouses in the country in order to deliver their goods to the customers promptly. Occasionally, ET rents additional warehouse space for temporary use. Thus, the total number of warehouses can vary from time to time. After the annual stock take, it was discovered that 2 of the rented warehouses had not been included in the count. This industry is highly competitive and new products are constantly introduced into the market by various competitors. During the year, ET launched a marketing campaign, "ET calls home" in order to promote its newest smartphone model. Unfortunately, this model received lukewarm responses from consumers as the market often judged that ET's main competitor, Nokia produces better smartphones.

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Question 1: Identify and discuss at least TWO financial report assertions for the audit of inventory at book that you believe would be assessed as high risk. Justify your decision.

Reference no: EM132543541

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