Allow approximately 1 hour. 1. The greatest vulnerability to inventory theft is having ... a. a dishonest employee. PB b. insufficient controls on shipping reports. c. no centralized department for receiving and storing merchandise d. insufficient controls on purchasing. 2. A red flag indicating that an inventory theft scheme is operating within your company is: a. An increase in Accounts Receivable as a percentage of Sales b) An increase in Cost Of Goods Sold as a percentage of Sales c. An increase in Accounts Payable as a percentage of costs d. An decrease in Accounts Receivable as a percentage of Sales 3. Which of the following may be red flags of an inventory theft scheme operating within your company? a. Shipments of merchandise for which there is no record of a sale b. A higher number of uncollectible sales or greater bad debt exper c. Sales are canceled after merchandise is shipped Any of the above 4. Which of the following is a control designed to prevent inventory theft a. Prenumbered and controlled requisitions, receiving reports, inventory tags and sales tickets b. Making sure that the same employee who receives inventory al= does the year-end physical count of inventory c. Making sure that the employee who keeps the ledger inventory accounts also does the year-end physical count of inventory d. Having one employee control shipping, receiving, and inventory records Allow approximately 1 hour. 1. The greatest vulnerability to inventory theft is having ... a. a dishonest employee. PB b. insufficient controls on shipping reports. c. no centralized department for receiving and storing merchandise d. insufficient controls on purchasing. 2. A red flag indicating that an inventory theft scheme is operating within your company is: a. An increase in Accounts Receivable as a percentage of Sales b) An increase in Cost Of Goods Sold as a percentage of Sales c. An increase in Accounts Payable as a percentage of costs d. An decrease in Accounts Receivable as a percentage of Sales 3. Which of the following may be red flags of an inventory theft scheme operating within your company? a. Shipments of merchandise for which there is no record of a sale b. A higher number of uncollectible sales or greater bad debt exper c. Sales are canceled after merchandise is shipped Any of the above 4. Which of the following is a control designed to prevent inventory theft a. Prenumbered and controlled requisitions, receiving reports, inventory tags and sales tickets b. Making sure that the same employee who receives inventory al= does the year-end physical count of inventory c. Making sure that the employee who keeps the ledger inventory accounts also does the year-end physical count of inventory d. Having one employee control shipping, receiving, and inventory records