Assume that you are a forensic accountant consulting for the Mixed Veggies Company. The company has been suffering inventory losses for unknown reasons. Every inventory count for the last five years has shown a significant shortage. The CEO and controller have been debating possible causes for the problem including everything from theft to accounting errors. The controller thinks the investigation should take place strictly within the inventory department. The CEO, on the other hand, things a much broader investigation is needed and should include sales and billing.
Given the information you have, state whether you agree with the CEO or the controller. describe your position.