The following is an inherent risk:

The Bookstore Inc. is a client we have been assigned to and in doing some initial investigation our audit team found inadequate inventory processes that could lead to overstocking or stockouts. Overstocking ties up capital and warehouse space, while stockouts can result in lost sales and dissatisfied customers. The audit team also discovered late and inaccurate orders. Inaccurate inventory levels can lead to delays in order fulfillment, impacting customer satisfaction.

Question $16$ options:

True

False