Also, in accounting terms, is there a difference between ‘audit’ and ‘inventory’? If so, do you need to actually see the gold at all for an audit, or do just need to examine the books?
From the photos I’ve seen, the gold appears to be already stacked bare bar on bar. I don’t think you could audit/inventory/count without contact and loss now. But you could do something like encapsulation and RFID for future counts.
Um don’t we know how much is already in there? And i assume we count what is going out? So we should know right? Does handleing the bars really make them loose that much?
I suppose you could map out the propagation of sound waves through the mass. Changes in speed would reflect (ha) changes in density. Would make a good thesis.
Computer Aided Tomography should be able to verify that it’s solid, and a very accurate modeling of the volume. The trick is figuring out if its all gold. I’m over my head here, but maybe xrays or gamma rays (which would be needed for the CAT) might be able to determine if its gold by measuring how much radiation is blocked by the gold. Or maybe just something that measures neutron emissions from breakdown of isotopes.
A physical inventory could be performed, IME, without moving all of the gold.
Standard procedure for PIs in most industries is to do a first count as labeled.
A second count would be performed for variances in any location. Product counted during the second count would be moved to ensure that there were no “holes” in the location and a percentage audited to assure that the item is the correct one (bars, bouillion, coinage), the correct size / weight and the correct purity.
Any second count that didn’t match either the system quantity or the first count would have a third count performed and 100% of product audited.
Whatever variances are found after a physical inventory are usually (and in the case of Ft. Knox, I would hope definitely) reconciled for the root cause, then inventory adjusted accordingly.
So, in my professional (I work in inventory management) opinion, not all of the gold would have to be moved, but at least some of it would.
Is there proof that moving the bars would “lose more than $10 in gold dust”? The weight of gold bars is pretty precisely measured and anything that comes up short can be suspect, but a google image search shows people posing with them and stacking them for photo ops without worrying too much about devaluing them with every touch.
Anyway, if they’re stored on some sort of pallet (makes them easier to steal in the movies) so you could weigh the pallet and see if it adds up to X bars. They would probably test random bars, but I don’t think any audit would go so far as to prove every bar is solid and all gold because that’s done when they’re minted. Security is pretty tight -it takes 10 people to open the vault- and it’s pretty much impossible that anyone would have carried in fake bars and switched them with gold bars from the middle of the pile. So, basically, an audit needs to check that the books and inventory match.
If the Czar of Sarcasm says so, I, and all other loyal (or secretly treacherous) Sarcasts must accept his word as infallible. Besides, who said it made sense?
In a French national organism that holds all sort of valuables, the yearly involves people going down in the secured areas and actually check the presence of some random elements. Besides, traditionnally, they check the loose change of the day and a container of various items (I think it includes an old watch, for instance) that has been there unclaimed forever (more than a century at least).
But the whole procedure is more symbolic than anything.
Well, the whole point of an audit is to count what’s actually there, and compare that with what we think is there (based on what went in and out).
Of course, the whole discussion is a tiny bit silly. $10 of gold dust is nothing compared to the total cost of an audit. I mean, how much labor cost would it take just to move all those gold bars, let alone costs of security, professional auditors, depreciation on all the pallet jacks and other equipment, replacing labels or containers damaged during the moving, etc.?
Is he the current Czar or the former one under Bush? I’m still on the fence about the current one, but that Bush Czar was just a crony and… oh, don’t get me started, we all know what happened with him.