

Raw materials, work-in-progress (WIP), and finished goods are all managed by manufacturers, and this multiplies the amount of intricacies involved and the tracking/reconciliation challenge during audit services. data and tracking during audit services.
Costing methods and explanations must be error-free because integrating materials, labor, and overhead as well as allocating these elements can result in financial statements being inaccurate and lead to noncompliance or compliance issues.
An increased number of cycles in production as well as movement of inventory leads to increased recording errors and misalignments with data.

Seamless, continuous operations of production are contrary to conducting the inventory count, and the counting leads to disruption of the operation or flow of the work.

Weak separation of duties, inadequate or no documentation, and insufficient system controls can lead to increased potential loss to fraud and/or loss of inventory due to theft.



