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Observing Physical Inventory, Explain a fraud scheme

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

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Solution Summary

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

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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 provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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