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Invigilation Techniques for Fraud

You are a fraud examiner who has been hired by Steinway Company to carry out an investigation. Steinway is a beverage company that has experienced increased shipments of beverages but no increase in revenue. Management suspects that inventory is being shipped to unknown places or is being stolen.
How could you use invigilation to help you determine if inventory is being stolen or shipped to unknown locations? Briefly explain how you would carry out this investigative procedure.

Solution Preview

A fraud examiner would look at this scenario and assume with reasonable probability that inventory theft, probably by an employee, is occurring due to the fact that the increased inventory cannot be explained by a concurrent increase in sales for the beverage company. The fraud examiner would construct their investigation assuming the event (theft) is taking place, given the circumstances.

To use invigilation in our examination of the situation, we would have the greatest amount of ...

Solution Summary

The solution discusses invigilation techniques to detect inventory theft at Steinway Company.