Provide internal controls to mitigate the risks below:

a$.$ Misstatements due to errors or fraud, loss or theft of inventory, and inadequate controls leading to discrepancies between physical inventory and recorded amounts

b$.$ Overstatement $($e$.$g$.,$ Phantom inventory$)$ or understatement $($e$.$g$.,$ unrecorded liabilities$)$ leading to inaccurate financial reporting

c$.$ Inventory is a significant target for theft; inadequate controls can lead to loss

d$.$ Inventory may become obsolete or spoiled, leading to financial losses if not effectively managed.

e$.$ Mistakes in counting, recording, or valuing inventory can lead to significant misstatements.

f$.$ Poor physical safeguards can result in inventory discrepancies, affecting both quantity and valuation

g$.$ Risks related to supply chain issues can affect inventory levels and valuation, impacting overall business operations.