You are aware that your nonpublic audit client is under pressure to meet financial covenants from its lenders; specifically, the lenders review the company$$s interest coverage ratio and debt$-$service coverage ratio annually. In performing year$-$end audit procedures, you notice a formula error in the client$$s spreadsheet used to cal$-$ culate its inventory costs, and it appears that general and administrative $($G&A$)$ expenses $($unrelated to production$)$ are being capitalized into the reported cost of the inventory. You compute the magnitude of these capitalized G&A costs and realize that these costs make the difference between the company meeting its lender$-$required covenants and failing those covenants.