Understanding, Detecting and Preventing Inventory Fraud

Learning Objectives

• To identify common inventory frauds.
• To review how to design internal controls to help prevent and detect inventory fraud.

Course Description

The organization has to look above and beyond the financial impacts of fraud. Inventory fraud means the theft of inventory items and the falsification of inventory records on a company's financial statements. Small businesses are the main target where employees or businesses themselves may engage in fraudulent activities to trick shareholders and tax agencies. Inventory means raw materials, WIP stocks, or finished goods items kept at the company's storage facility. Inventory is considered one of the most valuable current assets of the entity's financial statements. It requires you to use various methods to measure and track inventory. Hence, the protection of inventory becomes essential for a company's growth. Well-timed fraud detection and prevention can save valuable time and money for your organization.

This CPE/CPD Auditing Webinar is designed to review the issue of inventory fraud. 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. 

This online Fraud CPE webinar covers the following key topics:

• Review the issue of inventory fraud
• Examples of actual fraud
• How frauds are being committed and how they are uncovered
• Review various methodologies for detecting inventory fraud
• Develop internal controls to help prevent and detect inventory fraud

Overview

• Fraud research

  11 mins
• Fraud in the news

  21 mins
• Behavioral red flags for fraud

  34 mins
• Phantom inventory scheme

  48 mins
• Detecting inventory frauds

  63 mins
• COSO Framework for internal control

  72 mins
• Internal controls for inventory control

  89 mins
• Internal Controls for inventory security

  94 mins