Group #1 ASC Questions 1) One month after an audit report was issued, the audit partner discovers that the inventory in a client's upstate warehouse was not included in the previous year's financial statements. The am0iu1t of inventory located in the warehouse is a material amount. The omission was an error by the client. REQUIRED: What is the proper accomlting treatment for the error? Cite the specific authoritative reference. 2) John Sheehan, CPA, and a client had a conversation about a poor acquisition of a business that the client made last year. The original purchase of the business included the recording of goodwill. The client explained that the most of the customers and employees left the business and the income streams did not