Is Your Inventory Missing? Expert Tips on Detecting and Preventing Fraud

ARTICLE | July 29, 2024

Authored by Vasquez + Company

Accurate inventory control is critical for retailers, manufacturers, and contractors to ensure operational efficiency and profitability. The article "Is Your Inventory Missing - Or Stolen? Ask an Expert" discusses the importance of inventory management, potential reasons for inventory discrepancies, and the role of fraud experts in identifying and addressing theft.

Key Points

• Initial Investigation: Experts first consider innocent explanations for missing inventory, such as sloppy records or procedural errors.
• Fraud Indicators: Signs of a fraud-conducive environment include poor internal controls, over-reliance on individual employees, and weak management oversight.
• Fraud Detection: Red flags like unusual journal entries or suspicious vendor patterns are thoroughly investigated.
• Physical Inventory Confirmation: Ensuring accurate physical counts is vital, often requiring outside specialists to minimize fraud risk.
• Automation: Implementing automated inventory control systems can significantly reduce the risk of inventory shrinkage due to fraud.

For more information, read the full article here.

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