How should suspected loss be escalated?

• A. Notify the supervisor, secure the area, file a loss report, and begin investigations per policy.
• B. Ignore the loss until the next audit.
• C. Remove the asset from records and wait.
• D. Notify only the property custodian.

Answer: (A)

Escalating suspected loss requires immediate, formal action to protect assets and preserve evidence while triggering the proper controls. Notifying the supervisor ensures the right oversight, authority, and resources to handle the incident. Securing the area prevents further loss, tampering, or contamination of evidence, which is crucial for an accurate investigation. Filing a loss report creates an official, auditable record that documents what happened and when, forming the basis for any follow-up actions. Beginning investigations per policy ensures the inquiry is consistent, documented, and aligned with established procedures, which helps determine root causes, potential responsibility, and steps to recover or prevent recurrence.

Other options fail to establish a proper, controlled response: delaying action until a future audit leaves the loss unaddressed and unverified; removing the asset from records without following the chain of custody or formal review violates accountability and fraud-prevention practices; and notifying only the property custodian omits the broader supervisory and investigative steps needed to resolve the incident and safeguard the organization.