Provide internal controls to mitigate the risks below:

$$ Potential for misstatements due to human error, fraud, or inadequate internal controls that could lead to significant discrepancies in financial reporting

$$ Obsolete or damaged inventory is not properly written down, which can inflate asset values on the balance sheet

$$ Stolen or lost inventory, which can affect the overall financial health of the organization

$$ The inventory reported does not belong to the entity $($e$.$g$.,$ inventory on consignment or in transit$).$

$$ Inconsistency in inventory counting methods or timing.