If you are brought in as Sandra’s outside forensic accountant, what advice would you give her?
Which employees could be stealing inventory? Describe one or two possible schemes applicable to this case.
Tenkey Book Company operates a chain of retail bookstores throughout the United States. Sandra Hawthorn, Tenkey’s controller, runs a fairly tight internal control system, with rigorous requirements for the segregation of duties throughout the company. Even the best systems can have problems, and recently someone called in a tip to the company’s anonymous hotline saying that Tenkey was losing a lot of inventory to employee theft and that the problem was pervasive through many of the company stores. The caller left no details as to who was committing the thefts or how they were being committed.