Question

In: Accounting

How Can the inventory and cost of goods sold by a control risk for JB HI-FI?...

How Can the inventory and cost of goods sold by a control risk for JB HI-FI? such as fraud and theft.

Please provide a control test that may prevent this from happening

Solutions

Expert Solution

Generally a company like JB HI-FI maintains a lot of stock.

Their investments in inventory will be huge. That makes them vulnerable to theft and frauds.

To prevent such risks they may resort to various inventory controls such as Fence and Lockout the warehouse, Inventory taking, Auditing the inventory control records, Maintenance of stock records, Inspection of inventory.., etc.

Various inventory control tests are available JB HI-HI may choose appropriate controls needed to reduce the risk of frauds and thefts.

ekkarill92 answered 2 years ago
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