Question

To prevent fraudulent shipments of merchandise, organizations should:

a. Match every receiving slip to an approved purchase order.
b. Match every outgoing shipment to a sales order.
c. Make sure that all increases to perpetual inventory records are supported by proper source documents.
d. All of the above

Answer 1

Organizations should match receiving slips, outgoing shipments, and inventory record increases to the correct documentation to prevent fraudulent shipments. All the practices listed contribute to maintaining accurate, fraud-free records.

Step-by-step explanation:

To prevent fraudulent shipments of merchandise, organizations should:

• Match every receiving slip to an approved purchase order.
• Match every outgoing shipment to a sales order.
• Make sure that all increases to perpetual inventory records are supported by proper source documents.
• All of the above are correct practices for organizations to prevent fraudulent shipments.

These procedures ensure that there is a clear record of items being received and sold, creating a trackable audit trail that can be used to detect and prevent fraud. Proper documentation helps maintain accurate inventory levels and prevents the shipment of unauthorized goods.