When an employee perpetrates a credit card refund scheme, the perpetual inventory will show a greater amount than the physical inventory.

Question

Quizplus · Accepted Answer

A credit card refund scheme involves an employee generating fake refunds on credit card purchases and pocketing the refunded amount. This results in the perpetual inventory showing a greater amount than the physical inventory, as the system does not account for the fraudulent refunds.

When an Employee Perpetrates a Credit Card Refund Scheme, the Perpetual