In October 2025, MSI installed a new cloud-based inventory costing system to replace a system that had been developed in-house. The old system could no longer keep up with the complex and detailed manufacturing costing process that provides information to support competitive bidding. MSI's IT department, together with consultants from the software company, implemented the new inventory costing system, which went live on December 1, 2025. Key operational staff and the internal audit team from MSI were significantly engaged in the selection, testing, training, and implementation stages. MSI's fiscal year-end is June 30. The following table shows financial information for the first two quarters of the fiscal year-end June 30, 2026 (amounts in millions). Note that the financial data listed are for the three-month quarter ended (i.e., the second quarter does not include the first-quarter data). Item 1st Quarter 2nd Quarter Total assets $96.0 $92.0 Total revenues 33.0 31.0 Pretax income 3.2 2.8 The pretax income for the first two quarters is reasonable, with a net profit margin falling between 8 and 10% of sales. Based on prior years, pretax income for the third quarter usually holds steady relative to the second quarter, but pretax income for the fourth quarter typically decreases by 20% over the third quarter as governments reach the end of their spending budgets. Gather information: Considering both industry and entity factors, what are the major inherent risks in the MSI audit?