Question

Inventory accounting can often be used for unethical or fraudulent behavior. discuss the accounting principles and practices as they relate to inventory, and list one or more way(s) that fraudulent activity can take place. be as detailed as possible, and if appropriate, include a personal experience you have encountered. next, discuss at least one way to reduce the risk of fraudulent practices such as this from taking place in a business.

Answer 1

The accounting principles and practices as they relate to inventory can be used in unethical ways. For example in my industry many teachers have to collect inventory and check it in but they steal the inventory for themselves. One way to reduce the risk is to have 2 people check off on the inventory.