During discussions with the Pinnacle controller, you learn that Pinnacle employees did a significant amount of the construction work for a building addition because of employee idle time and to save costs. The controller stated that the work was carefully coordinated with the construction company responsible for the addition.4. Inherent Risk: This situation involves a nonroutine transaction where there is a risk that materials, labor and/or overhead are incorrectly applied to the property accounts. Accounts Affected: Property accounts, inventory, and cost of sales