d. Inappropriate Assignment of Labor Costs to Inventory A company having difficulty meeting profit targets might assign to inventory labor cost that should have been charged to expense. Analytical procedures such as comparing costs incurred to budgeted cost and verification of valuation of inventory are some of the useful techniques in detecting such fraud.
d. Inappropriate Assignment of Labor Costs to Inventory A company having difficulty meeting profit targets might assign to inventory labor cost that should have been charged to expense. Analytical procedures such as comparing costs incurred to budgeted cost and verification of valuation of inventory are some of the useful techniques in detecting such fraud.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:d. Inappropriate Assignment of Labor Costs to Inventory
A company having difficulty meeting profit targets might
assign to inventory labor cost that should have been charged
to expense. Analytical procedures such as comparing costs
incurred to budgeted cost and verification of valuation of
inventory are some of the useful techniques in detecting such
fraud.
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