Q. when inventory is stolen what is the key concealment issue for the fraudster?

1. inventory shrinkage

2. Out of balance cash account

3. register cash does not balance to the register totals

4. The perpetrators endorsement is on the canceled check

Q. which of the following is not an example of physical padding?

1. empty boxes are placed within the existing inventory

2. merchandise is moved from one location to another so it is counted twice

3. certain inventory items are not included in the inventory counts

Q. in reference to a fictitious refund scheme which of the following is false?

1. in a fictitious refund scheme no merchandise is returned

2. and I fictitious refund scheme inventory is overstated and will not agree with the inventory on hand

3. A high level of refunds or voids may indicate a fictitious refund scheme

4. affect tacious refund scheme can never be detected by comparing the physical amount of inventory on hand to the inventory records

Q. is the following statement true or false? employees may use falsified receiving reports to steal inventory by falsifying the record in an incoming shipment by marking it short and stealing the unaccounted for items