Case StudyYou keep lookingover the Green Companys financial
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Case StudyYou keep lookingover the Green Company’s financial statements to see where your analysis isgoing wrong. You are certain that the company is not experiencing revenuegrowth that would support the consistent increase in the inventories that arebeing reflected on the balance sheet. You just finished a comprehensive auditof all the physical controls of inventory, so you doubt that inventory is beingstolen. Everything else in the financials seems to look fine. In fact, theyseem to indicate that the company is improving in profitability.Using both therequired text and external resources, address each of the questions below. Yourresponses should range between 2-4 strong paragraphs for each question, withreferences appropriately cited. Visuals (tables, charts, graphs) are encouragedas a tool in summarizing major points.What might be a valid reasonfor the increase in Green Company’s inventory cost?Assuming that fraud is beingcommitted, how could a fraud perpetrator commit this type of fraud?What could be done to preventthis type of fraud?
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