CFE – Financial Transactions and Fraud Schemes — Question 2

All of the following measures would help prevent the theft of company inventory EXCEPT:

Answer options

• A. Having the purchasing supervisor perform the physical inventory count
• B. Restricting inventory access to authorized personnel only
• C. Having different people responsible for receiving inventory and shipping it
• D. Using prenumbered inventory receiving reports

Correct answer: D

Explanation

Using prenumbered inventory receiving reports is a good practice for tracking inventory but does not directly prevent theft. The other options enhance security and accountability by ensuring that inventory is counted accurately by a supervisor, restricting access to only trusted personnel, and separating duties between receiving and shipping to prevent collusion.