In one of the cases in the textbook, Larry Gunter was a shipping clerk for a computer company that manufactured microprocessor chips. After learning that the chips were valuable, he stole three boxes and sold them to his girlfriend's father. Since the scheme worked so well the first time, he continued stealing and selling the chips, even letting a co-worker in on the scheme. How was the theft discovered?

a. A security guard found the chips in a routine check of his work cart

b. An inventory manager filling an order noticed that many of the chips were missing

c. The auditors found the shortage when they conducted the annual inventory event

d. His co-worker notified the loss prevention department in exchange for a cash reward

Question

Business

Roderick Graham

4 February, 16:14

In one of the cases in the textbook, Larry Gunter was a shipping clerk for a computer company that manufactured microprocessor chips. After learning that the chips were valuable, he stole three boxes and sold them to his girlfriend's father. Since the scheme worked so well the first time, he continued stealing and selling the chips, even letting a co-worker in on the scheme. How was the theft discovered?

a. A security guard found the chips in a routine check of his work cart

b. An inventory manager filling an order noticed that many of the chips were missing

c. The auditors found the shortage when they conducted the annual inventory event

d. His co-worker notified the loss prevention department in exchange for a cash reward

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Answers (1)

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Lil Mama · Answer 1

B) An inventory manager filling an order noticed that many of the chips were missing

Explanation:

The text book case explained that Larry was discovered by the inventory manager, but what really is troubling is not that he was able to steal the chips since bad things can happen, but that they happened several times. This means that the company's controls are extremely deficient and it wasn't so difficult to bypass them. If the inventory manager didn't discover Larry's crimes, then an auditor should have discover them. But that is no excuse, if the company knows that the chips are very valuable they should enforce stricter controls to prevent future incidents.