1-What happens when an employee records a fictitious refund of goods at his cash register? A. The victim companys inventory is understated. B. A disbursement from the register is unrecorded. C. The victim companys inventory is overstated and a disbursement from the register is recorded. D. The victim companys inventory is unreported and a disbursement from the register is overstated.

2-When an employee rings a fraudulent refund on a register, Per the Fraud Examiners Manual, which of the following is a method used to conceal inventory shortages? A. Applying false debits to perpetual inventory B. Keeping obsolete assets as part of inventory C. Forcing inventory totals D. Charging assets to existing liability accounts

3-Which of the following is the most common form of fraudulent register disbursement? A. Refunding a completely nonexistent sale B. Removing merchandise from the stockroom before it has been sold C. Refunding merchandise for more than it is worth and pocketing the difference D. Disguising borrowed merchandise as a sale and later returning it for a refund

4-Voided sales schemes usually target: A. Fictitious sales transactions B. Actual sales transactions C. Small organizations D. Large organizations

5-Which of the following actions might be taken to prevent and detect unconcealed larceny of noncash assets? A. Segregate the requisition and receipt of inventory but not disbursements. B. Perform a trend analysis by comparing cost of goods sold to assets on hand. C. Conduct a current analysis of inventory to look for significant shrinkage. D. Educate employees about theft and how it can affect everyone in the organization.

6-Which of the following is an example of a red flag for an inventory theft scheme? A. A decrease in the cost of goods sold as a percentage of sales B. A decrease in the cost of bad debt expense C. A decrease in the number of uncollectible sales D. An increase in the level of inventory shrinkage