Respuesta :
Unexplained increases in inventory shrinkage can be a red flag that signals a type of fraud scheme called the false billing scheme.
What is a false billing scheme?
A false billing scheme is described as a form of billing fraud in which an employee of a company dealing with inventory submits inflated, fake invoices for the services and the goods purchased by the company (employer). It is important to mention that employee creates invoices that are not real.
Shrinkage in the inventory due to unexplained reasons can be highlighted as a red flag because it is a sign of fraud created by an employee of the company. Fraud occurs when inflated and fake invoices are provided to the company, and this causes the inventory to reduce considerably.
It can be concluded that unexplained increases in inventory shrinkage can be a red flag that signals a type of fraud scheme called the false billing scheme.
To know more about false billing schemes, check this link:
https://brainly.com/question/3842059
#SPJ4
