Question: Exhibit presents various ways inventory accounts have been used to perpetrate financial statement fraud. Explain how the following inventory misstatements would cause the financial statements

Exhibit presents various ways inventory accounts have been used to perpetrate financial statement fraud. Explain how the following inventory misstatements would cause the financial statements to also be misstated, and what audit procedures might be used to catch these misstatements.
a. Overstate ending inventory
b. Overstate inventory in transit
c. Fail to write inventory down from cost to market

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