Forensic Accounting and Inventory Management

What skills does forensic accounting utilize?

• Marketing and sales skills

• Accounting, auditing, and investigative skills

• Human resources and management skills

• Technical and engineering skills

What is the main purpose of forensic accounting examinations?

• To increase sales

• To identify fraud and errors

• To improve customer service

• To develop new products

Why is a loyal customer base important for a business?

• It reduces the need for marketing

• It ensures long-term success

• It allows for higher pricing

• It decreases production costs

What does inventory shrinkage refer to?

• Increase in inventory size

• Loss of inventory without a sale

• Expansion of warehouse space

• Increase in product prices

What is the result of a physical inventory being lower than accounting records?

• Increased profits

• Loss of money

• Expansion of business

• Hiring more staff

What can small businesses do to minimize overpayments?

• Increase employee salaries.

• Reconcile paystubs with time cards.

• Offer more vacation days.

• Hire more managers.

How often should a company review its bank statement?

• Once a year.

• Once a month.

• Every week.

• Every day.

What is a typical outcome of completing a reconciliation?

• Increased bank fees

• Discovery of missing information or errors

• Higher interest rates

• Reduced account balance

Who created the Securities and Exchange Commission (SEC)?

• The Federal Reserve

• The United Nations

• Congress

• The World Bank

Which type of accountant specializes in examining accounting transactions for law enforcement?

• Public accountant

• Forensic accountant

• Government accountant

• Management accountant