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Asset Misappropriation: Inventory and Other Assets - Coggle Diagram
Asset Misappropriation: Inventory and Other Assets
Method of misuse
Missuage
Stolen
Detection of Inventory Schemes
Analytical review
Someone has been embezzling money through a false billing
scheme
Someone has been skimming sales revenue
Ending inventory has been depleted by theft
Inventory Shrinkage
Concealing Inventory Shrinkage
Fictitious sales and accounts receivable
Write-off inventory
Altered inventory records
Physical padding
Definition: unaccounted-for reduction in the company’s inventory
that results from error or theft
Inventory Theft
Purchasing and receiving schemes
Larceny schemes
Prevention of Inventory Schemes
Separation of duties
Independent checks
Proper documentation
Physical safeguards