case study 2

 
You keep looking over the Green Company’s financial statements to see  where your analysis is going wrong. You are certain that the company is  not experiencing revenue growth that would support the consistent  increase in the inventories that are being reflected on the balance  sheet. You just finished a comprehensive audit of all the physical  controls of inventory, so you doubt that inventory is being stolen.  Everything else in the financials seems to look fine. In fact, they seem  to indicate that the company is improving in profitability.
Using both the required text and external resources, address each of  the questions below. Your responses should range between 2-4 strong  paragraphs for each question, with references appropriately cited.  Visuals (tables, charts, graphs) are encouraged as a tool in summarizing  major points.

What might be a valid reason for the increase in Green Company’s inventory cost?
Assuming that fraud is being committed, how could a fraud perpetrator commit this type of fraud?
What could be done to prevent this type of fraud?

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