During 2008, the accountant discovered that the physical inventory at the end of 2007 had been understated

Question:

During 2008, the accountant discovered that the physical inventory at the end of 2007 had been understated by $8,175. Instead of correcting the error, however, the accountant assumed that an $8,175 overstatement of the physical inventory in 2008 would balance out the error.
Are there any flaws in the accountant's assumption? Explain.