π Question
Our client is a national electronics retailer with 300 stores across the U.S. They sell laptops, tablets, gaming consoles, and accessories β all high-value, serial-numbered items.
Recently, the CFO noticed recurring mismatches between reported inventory levels at the store level and what appears in corporate financial statements. This has led to higher-than-expected write-offs and concern from auditors.
What areas would you want to explore to identify the root cause of the issue?
π Case Exhibit
Your answer:
Our client is a national electronics retailer with 300 stores across the U.S. They sell laptops, tablets, gaming consoles, and accessories β all high-value, serial-numbered items.
Recently, the CFO noticed recurring mismatches between reported inventory levels at the store level and what appears in corporate financial statements. This has led to higher-than-expected write-offs and concern from auditors.
What areas would you want to explore to identify the root cause of the issue?