Because the most likely misstatement in the inventory process is an understatement misstatement,existence and valuation are often identified as relevant assertions for this process.

Question

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The most likely misstatement in the inventory process is actually an overstatement, not an understatement, which is why existence (to ensure inventory exists) and valuation (to ensure it is valued correctly) are relevant assertions to verify the accuracy and completeness of inventory records.

Because the Most Likely Misstatement in the Inventory Process Is