After reading many posts, Accountant B’s philosophy is correct concerning the inventory
shortage after the end-of-year counting was completed. As you stated in your post, Accountant A
felt it was great that they caught the mistake, although the discrepancy should not have been as
significant as it was. Accountant A did not seem to care if the error was intentional or something
else may have happened. In Luke 12:2, when Jesus was teaching the people, it is written, “For
there is nothing covered, that shall not be revealed; neither hid, that shall not be known”
[ CITATION Hol972 \l 1033 ].On the other hand, Accountant B is more concerned about how the
significant difference between the computer and the counted inventory occurred. CBU installed
the new computer system to track inventory and the cost of inventory; however, the company
may not have had anyone trained to set up the program to start counting inventory. If the
inventory in the warehouse had not been correctly added to the program, the starting figures
could have been off. All inventory movement should have been stopped, and an initial count
should have been done when the system was installed. The organization could have better
understood the inventory at that time. The company could have also used different variations of
cycle counting to find discrepancies during the year instead of finding out there was a significant
difference at the year-end count [ CITATION Wal22 \l 1033 ].
References
Holy Bible (KJV).
(1997). Grand Rapids: World Publishing.
Walters, E., Schmidt, E., & Newton, K. (2022, November 6).
A Comparison of Cycle Counting
Methods
. https://web-s-ebscohost-com.ezproxy.liberty.edu/ehost/pdfviewer/pdfviewer?
vid=2&sid=13e4456f-0c86-4248-978c-344a06b8feaf%40redis
