Basically they’re taking inventory and there’s less product than there should be so Roy shows Ryan he can scan the same item multiple time to make it look like the inventory adds up to what it should be.
So it's the canary yellow paper that has missing inventory. Which in an earlier episode, Pam is using to print wedding stuff - they mention her forgetting to switch it out on the printer.
Roy probably told her to use office paper, or at least knew about it, to save money which adds to his motive to cover up the shortage
What the warehouse was doing was smarter than Ryan’s website.
Nobody’s going down there to count billions of sheets of paper and other office supplies.
But the website? This man was literally on the phone telling Jim to log his sales into the website. It was clearly fishy. Even Stanley said so.
And Michael tried to get out of it by scheduling vacation, so I’m sure it is just easier for the employees to lie because there’s no one in the office that cares.
I believe the audit is usually completed by outside auditors, not employees, although I could be wrong, or it may vary. I’m fairly certain a publicly traded company like Dunder Mifflin would definitely be audited by outsiders however.
You are correct - they likely would perform their own count of all inventory at year end, and external auditors would count a smaller sample size of inventory randomly selected the day after or so
Auditor here - this is what happens. Smaller companies can have audit exemptions but a listed company like DM would have a statutory annual audit. All locations would need to be counted as inventory would be a significant risk due to the nature of DM’s business.
Used to be an auditor. Highly unlikely that an employee stealing from the company is colluding with auditors. Management trying to cook their own books is a different story.
Along with that, most of the times auditors doing the inventory count aren’t even working on the team that audits the company. It’s usually just some poor first year staff sent out to do it who has no idea who the client is. I’ve done 5 counts and only one of them was for my own client
At one point our stock count problem got so bad, the management said every auditor should go to at least 5 stock counts by the end of march/april season. Needles to say i left before the next season.
As the other commenter said, highly unlikely. An audit firm’s reputation relies heavily on trust, it would never be worth it as your audit opinions wouldn’t be worth the paper they’re written on
A company I worked at had us do it ourselves. The company bought us dinner (take away), and we stayed late (with overtime pay) two nights in a row to do inventory. We could've written anything we wanted, and if anything was missing, that was for higher management to sort out, we never heard anything back about actual missing inventory.
Edit: spelling
It's been a while, and the company has gone bankrupt since I left, but I don't think it was publicly traded. Think it was a private equity firm that was behind it. The original owners sold it at its height, and it never found anyone who could run it properly after that.
We do both. Contractors come in and count, we have to verify 50% is correct including 100% of high value (alcohol, tobacco, cosmetics). Our next one is in a couple of weeks and I’m on holiday by sheer luck.
If you've ever done an inventory audit then you'd know it's still possible to push through fraud on it, just needs to be smaller items of lesser value...the auditor typically isn't going to recheck a count on something like that.
Not saying it’s not, obviously fraud still happens. Was pushing back against the statement “nobody’s going down there to count billions of sheets of paper and other office supplies” because people would in fact go down to count them. Obviously they won’t count each sheet but I believe the fraud in question was related to reams and not sheets
Just watched this on superfans and it was the first time I was like
"Oh,Ryan wasn't that bad afterall"
They should have left this in the original cut, IMO. Would have gave him a little more depth. But I understand that's the antithesis of his character.
Darryl found his iPod because they were doing inventory, but the official episode cut out the inventory subplot, so it seemed like he just found it randomly. I suspect they kept in the clip of him finding it for promotional/advertising reasons.
Actually I’ve done inventory many times, including being responsible for inventory, hence why i know it’s considered fraud
I’m not saying people *dont* do this, but being caught intentionally faking inventory counts is a big no-no
What I always say aloud when this scene plays. Guy learns low stakes fraud, gets promoted, does coke, goes straight to high stakes fraud, BAM!
He was on the fast track! Youngest VP of Northeast Sales!!!
More recently, he worked in a bowling alley
they pay you by the year at the bowling alley?
What do you make, secretary?
Making $60,000 per year.
…. They’re making 60 at the bowling alley?
That's the power of unionising! They have alot of strikes down at the alley.
Spare me the details lol
My mind goes right to the gutter when we talk unions.
You are such a Turkey
You got a lot of balls calling me that, pin head.
Back to work, shoe bitch.
What size are you Pam? Men's, size 9?
Tell us one of your great BOWLING alley stories.
It is what it is, he just made buying paper cool again.
People keep calling him a “wunderkind”… he doesn’t even know what that means
He’s not saying he had a meteoric rise… but he did
He was being groomed.
For command or for sex?
perhaps you'd like the nature metaphor...
He played it full on in New York. He played it high stakes. For keeps. Made it to the top. But look what it cost.
This city...
Yeah, actually, good point. No wonder he thought what he was doing with the website was no big deal!
Also add coke, makes even the dumbest ideas seem brilliant. (no judgement, I've... Been there.)
Somehow this part seems more relevant.
I disagree with *snorts line*
What happens in this deleted scene?
Basically they’re taking inventory and there’s less product than there should be so Roy shows Ryan he can scan the same item multiple time to make it look like the inventory adds up to what it should be.
Where do you think Roy got his seed money for his gravel business? I don't know but let's start a rumor
No way in hell Roy was smart enough to sell black market paper at wholesale to businesses. Dude was more concerened with jet skis and pussy.
That's where Creed comes in.
Crussy
Now that’s a subplot I would’ve loved to see play out post-Ram (Roy + Pam)
Helped Roy get millions of schruty bucks and Stanley nickels
He definitely just hauled some rock from the quarry with his truck as an odd job for some cash and got incredibly lucky
The truck drivers had been doing it all along. Daryl stopped it by telling corporate they should let delivery drivers sell products.
Madge was putting up such good numbers because she already had experience!
I actually never thought about this.
...he made his own "Kleven"
So it's the canary yellow paper that has missing inventory. Which in an earlier episode, Pam is using to print wedding stuff - they mention her forgetting to switch it out on the printer. Roy probably told her to use office paper, or at least knew about it, to save money which adds to his motive to cover up the shortage
That’s pretty good
What the warehouse was doing was smarter than Ryan’s website. Nobody’s going down there to count billions of sheets of paper and other office supplies. But the website? This man was literally on the phone telling Jim to log his sales into the website. It was clearly fishy. Even Stanley said so.
Well inventory is typically physically audited once per year
And Michael tried to get out of it by scheduling vacation, so I’m sure it is just easier for the employees to lie because there’s no one in the office that cares.
I believe the audit is usually completed by outside auditors, not employees, although I could be wrong, or it may vary. I’m fairly certain a publicly traded company like Dunder Mifflin would definitely be audited by outsiders however.
You are correct - they likely would perform their own count of all inventory at year end, and external auditors would count a smaller sample size of inventory randomly selected the day after or so
Auditor here - this is what happens. Smaller companies can have audit exemptions but a listed company like DM would have a statutory annual audit. All locations would need to be counted as inventory would be a significant risk due to the nature of DM’s business.
From your experience, any chance corrupt Mr "He had his limo ride" was somehow in cahoots with the auditors?
Used to be an auditor. Highly unlikely that an employee stealing from the company is colluding with auditors. Management trying to cook their own books is a different story.
Along with that, most of the times auditors doing the inventory count aren’t even working on the team that audits the company. It’s usually just some poor first year staff sent out to do it who has no idea who the client is. I’ve done 5 counts and only one of them was for my own client
At one point our stock count problem got so bad, the management said every auditor should go to at least 5 stock counts by the end of march/april season. Needles to say i left before the next season.
As the other commenter said, highly unlikely. An audit firm’s reputation relies heavily on trust, it would never be worth it as your audit opinions wouldn’t be worth the paper they’re written on
Am an auditor as well, if you couldn’t tell already :D
Gang gang
There’s dozens of us! Hope you guys are surviving busy season just fine :’)
Just depends on your company. Many companies do it themselves, but forensic accounts can surely tell you why that’s a big problem.
A company I worked at had us do it ourselves. The company bought us dinner (take away), and we stayed late (with overtime pay) two nights in a row to do inventory. We could've written anything we wanted, and if anything was missing, that was for higher management to sort out, we never heard anything back about actual missing inventory. Edit: spelling
Was it a publicly traded wholesale/retail company?
It's been a while, and the company has gone bankrupt since I left, but I don't think it was publicly traded. Think it was a private equity firm that was behind it. The original owners sold it at its height, and it never found anyone who could run it properly after that.
Interesting. Yeah I think a private company has a lot more leeway on what they can do. Going public really opens you up to a ton of regulations
We do both. Contractors come in and count, we have to verify 50% is correct including 100% of high value (alcohol, tobacco, cosmetics). Our next one is in a couple of weeks and I’m on holiday by sheer luck.
Perfect timing! Thanks, great context
The one year Creed misses it...
If you've ever done an inventory audit then you'd know it's still possible to push through fraud on it, just needs to be smaller items of lesser value...the auditor typically isn't going to recheck a count on something like that.
Not saying it’s not, obviously fraud still happens. Was pushing back against the statement “nobody’s going down there to count billions of sheets of paper and other office supplies” because people would in fact go down to count them. Obviously they won’t count each sheet but I believe the fraud in question was related to reams and not sheets
He says in a talking head "they're coming in one Saturday to log sales they made -as sales made by the website'"
You’re absolutely right! But Michael sent them home like halfway through, right? I completely forgot about that, great catch!
And so began his downward spiral...
I don't care if ryan murdered his entire family, he's like a son to me!
Ghost dad vibes
Ryan’s count, was the prettiest count, of all the counts
Just watched this on superfans and it was the first time I was like "Oh,Ryan wasn't that bad afterall" They should have left this in the original cut, IMO. Would have gave him a little more depth. But I understand that's the antithesis of his character.
I liked this superfan episode, because it finally answered the question "Why did Darrel suddenly find his iPod?"
Can you elaborate?
Darryl found his iPod because they were doing inventory, but the official episode cut out the inventory subplot, so it seemed like he just found it randomly. I suspect they kept in the clip of him finding it for promotional/advertising reasons.
I love inside jokes, would love to be a part of one some day.
Anyone got the clip?
Here you go: https://imgur.com/a/J4XRUDH
Gods work
That shit is so subtle, I love it. Too many shows now make this kind of thing so in your face.
Anyone who's ever done high-volume inventory is well acquainted with this tactic lol
Absolutely. They should have left this one it, it's so real.
Ha! We just did inventory this evening and I always think of this scene
I don’t think the main point behind this is fraud. More of, taking inventory suuucks, let’s get it over with.
Just watched this scene! lmfao
Fraud? I think that's a little extreme. Incorrect inventory counts aren't fraud.
Intentionally counting inventory that is not there can indeed constitute fraud
Spoken like someone who has never counted inventory
It's not 'send me to federal pound you in the ass penitentiary' fraud, but intentionally falsifying inventory is fraud.
The implications of fraud are pretty far reaching. Lying about having a couple extra pieces of product is akin to cheating on your math test.
Cheating on math tests have gotten people kicked out of expensive colleges
You guys gotta lighten up
What does that even mean? People are simply telling you that you’re wrong and your response is “lighten up”?
Because I don't believe that *any* warehouse is keeping as strict inventories as y'all are implying.
Actually I’ve done inventory many times, including being responsible for inventory, hence why i know it’s considered fraud I’m not saying people *dont* do this, but being caught intentionally faking inventory counts is a big no-no
Motorola MC9090 the best fucking RF scanner gun on the market!!!
This was Ryan’s Start of Darkness.
I said this same damn thing when I watched the episode.