Youre scratching your head. After three energy drinks and two cups of coffee, you cannot seem to find where your analysis of the financial statements has gone wrong, but it looks like inventory is getting larger and larger. You cannot find the problem, but you know that you havent seen growth in the actual levels of inventory shown in the financials. 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. Required: 1. What might be a valid reason for the increase in inventory cost? 2. Assuming that fraud is being committed, how could a fraud perpetrator commit this type of fraud?