Auditors closely evaluate how you report work in progress (WIP) inventory. Why? WIP relies on management’s estimates. Inexperienced or dishonest managers sometimes inflate these estimates, which makes the company appear healthier than it really is. Auditors consider whether allocations of materials, labor and overhead cost appear reasonable. They also monitor how revenue is being recognized based on product sales or the completion level of outstanding work. We can help you make reliable estimates and understand how to report WIP and revenue with confidence.
