berryphones produces two products: cell phone and computer tablets. Berryphone utilizes expensive quality materials to create the Redberry. In addition, Redberry pays top wages for its workforce to assemble the cell phone. As a result, in year 1 and year 2, berryphones dominated the market in cell phones and had substantial profits related to its redberry phone, which offered exceptional quality and several unique features that were not offered by any other cell phones. The redberry phone accounted fo 70% of revenue in year 1 and year 2. On January 1, Year 3, a new product released by a competitor, Strawberryphone, made their most popular model of cell phones, Redberry phones, obsolete. Management is about to release their annual results for the year ended December 31, Year 3 and has decided to ignore any of the competition's effect on their inventory. Management has not recorded any fictitious sales.

Select type of fraud, fraud factor, and audit procedure to detect misstatement due to fraud.