The most important lesson to be learned from the famous "salad oil case" is that a client can commit fraud by falsely moving inventory during a physical count to overstate the inventory balance.

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The "Salad Oil Case" involved a client (Zoecon Corporation) committing fraud by falsely inflating the inventory balance by using tanks filled with water instead of salad oil during a physical count. This illustrates that it is possible for a client to commit fraud by manipulating inventory during a physical count to overstate its value.

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