What type of adjustment is needed if discrepancies found in inventory exceed two digits?

When discrepancies in inventory exceed two digits, a Financial Liability Investigation of Property Loss (FLIPL) is required. This process is crucial because significant discrepancies indicate potential issues such as loss, theft, or mismanagement of property. A FLIPL allows for a thorough investigation into the circumstances surrounding the missing or damaged items and helps determine if someone is liable for the loss.

Conducting a FLIPL ensures accountability and proper documentation of the investigation process. It also provides an avenue for recovering losses or for corrective actions to improve inventory management systems. This protocol is a critical aspect of maintaining the integrity and security of military property and assets.

The other options, while related to inventory and asset management, do not specifically address the requirements for handling substantial discrepancies in inventory. A change of command refers to leadership transition within a unit, a DA Form 4949 is used for reporting financial liability but not exclusively for discrepancies of this magnitude, and a cyclical audit is a regular procedure for reviewing inventories rather than addressing significant discrepancies as per the FLIPL process.