in our inventory," the CEO insists. "There's no need to write it down." Sam explains that the inventory is outdated and unlikely to sell at the listed value. He suggests conducting a market analysis to determine the realistic value of the inventory. The CEO reluctantly agrees to the analysis but remains skeptical. Sam contacts several potential buyers and receives offers for the obsolete inventory. The highest offer is $150,000, significantly lower than the listed value. Sam presents this information to the senior partner and recommends writing down the inventory by $350,000 to reflect its true value. The senior partner agrees and informs the CEO of the decision. The CEO is disappointed but understands the need for accurate financial reporting. The inventory is written down, and the audit is completed with a clean opinion.