1. Assume that you have completed your procedures on the audit of Warren Corporation and have found the following audit issues a. Indicate the account balance financial statement assertion that is likely to be most impacted by each of the issues. b. Indicate whether the impact of the issue would be understatement or overstatement of the account Over/Understatement Issue Assertion it was discovered that a number of the items on hand and 1 counted in the inventory were on consignment. In performing a price test of inventory items, you found a 2 number of items priced below cost. It appears that the selling price of certain of the 3 company's products has declined significantly During the physical inventory it was noted that a number 4 of inventory items were damaged, Inventory items were stored in three different warehouses and the auditors fear that some items might be in an 5 undisclosed fourth warehouse, Some inventory items owned by the company were in 6 transit during the physical inventory Assertion Audit procedure A Completeness F. Examine curent vendors' price lists B. Existence G. Review drafts of the financial statements C. Rights and Obligator H. Select a sample of items during the physical inventory count and determine that they have been included on count sheets D. Valuation and Allocal Select a sample of recorded items and examine supporting vendors' voces and contracts E. Presentation and disc J. Select a sample of recorded items on count sheets during the physical inventory count and determue that items are on hand K Test reasonableness of direct labor rates