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Observing Physical Inventory, Explain a fraud scheme

Describe some considerations for observing physical inventory. Explain a fraud scheme that may be used for inventory.

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When you are counting, you want to be sure you are not double counting, that everything you see belongs to the firm (no consignments), and that items in transit are included or excluded properly. You are also concerned with costing of the ...

Solution Summary

Your discussion is brief (202 words) and gives three examples of inventory fraud schemes and explains the key factors in physical counts.