Can you help me? Options are Error and Fraud

Required Information Potential Misstatements In the Auditing of Inventory Read the overview below and complete the activities that follow. Because of its importance and typically high dollar value on the balance sheet of a manufacturing entity, the audit of inventory is important and often high risk. As such, auditors must take additional care when auditing this area due to the capacity for both errors and fraud. CONCEPT REVIEW: When identifying misstatements in testing inventory, it is important to consider the control environment to determine if the misstatements found are indicators of client error or intentional fraud. Read each misstatement that could occur when auditing inventory and determine if it is most likely an example of a client error (unintentional) or fraud (intentional). Intentional misstatement of inventory prices Intentional recording of purchases in the subsequent period Intentional misstatement of inventory production costs Items are stolen and no journal entry is recorded Erroneous pricing of inventory