Detecting & Preventing Inventory Fraud
Author: Robert K Minniti
| CPE Credit: |
2 hours for CPAs |
This course is designed to review the issue of inventory frauds. Examples of actual frauds will be provided so participants can understand how the frauds are being committed and how they were uncovered. We will review various methodologies for detecting inventory fraud and will discuss developing internal controls to help prevent and detect inventory fraud.
Publication Date: October 2016
Topics Covered
- Review the issue of inventory frauds
- Examples of actual frauds
- Howfrauds are being committed and uncovered
- Review various methodologies for detecting inventory fraud
- Develop internal controls to help prevent and detect inventory fraud
Learning Objectives
- Review methodologies for detecting inventory fraud
- Design internal controls to prevent & detect inventory fraud
- Identify ways management can use internal controls to encourage employees to help with inventory fraud prevention
- Recognize which industries is an example of where it is beneficial to use the specific identification method for valuing inventory
- Differentiate examples of short-shipping
- Identify inventory schemes manipulate inventory in order to defer reporting the company's expenses until the inventory is sold
- Recognize aspects of the control environment
- Differentiate which inventory count can be circumvented when it comes to inventory fraud
- Identify pressures involved with inventory fraud
- Recognize the number one internal control most often missing in an organization where fraud occurs
- Describe how most fraud is detected
- Identify specific risks of merchandise inventory
- Recognize how inventory must be adjusted to on a regular basis
- Differentiate which trend analysis a good way to detect breakage fraud
- Identify why it's important to document internal controls
- Recognize how internal controls need to be designed based on inventory
- Describe important internal control for manufacturing companies
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)
Program Prerequisites
A basic understanding of fraud and internal controls
Advance Preparation
None
