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With a manufacturer, wholesaler, or retailer, however, inherent risk

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With a manufacturer, wholesaler, or retailer, however,
inherent risk for inventory may be assessed at or near the
maximum level for all of the following reasons EXCEPT:
inventories are often stored at multiple sites, adding to the
difficulties associated with maintaining physical controls
over theft and damages, and properly accounting for goods
in transit between sites.
inventories are vulnerable to spoilage, obsolescence, and
other factors such as general economic conditions that
may affect demand and salability, and thus the proper
valuation of the inventories.
the wide diversity of inventory items may present special
problems in determining their quality and market value.
the volume of purchases, manufacturing, and sales
transactions that affects these accounts is generally high,
decreasing the opportunities for misstatements to occur.
Solution
Answer: the wide diversity of inventory items may present
special problems in determining their quality and market
value.

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With a manufacturer, wholesaler, or retailer, however, inherent risk for inventory may be assessed at or near the maximum level for all of the following reasons EXCEPT: inventories are often stored at multiple sites, adding to the difficulties associated with maintaining physical controls over theft ...
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