Stock & Contents

Matson, Driscoll & Damico’s experienced team of professionals help clients determine proper valuation of raw material, works-in-progress and finished goods following an insured or uninsured event.

Our forensic accountants determine the correct value in accordance with the provision of an insurance policy for in-sight inventory. Tasks to achieve this include:     

• Observing the actual physical count following the loss or performing test counts on a statistical sample of the items to verify the inventory accuracy
• Performing price tests on sample items to corroborate the cost or selling price of the items in question.

For inventory destroyed out of sight, our forensic accountants analyze financial records to verify the lost inventory’s quantity and value in accordance with the provisions of the insurance policy by:  

• Examining the observed physical inventory prior to the loss.
• Conducting a roll-through analysis of all inventory transactions in and out leading up to the date of loss and the date of the post-loss inventory
• Performing cut-off tests at pre-loss and loss dates to determine inventory received and dispersed from the location
• Counting the inventory, or supervising the insured’s personnel in the count, of inventory remaining at the insured’s locations

MD&D also performs tests for obsolete and slow-moving inventory, often more complicated valuations due to unavailable inventory or items with decreased demand.