A warehouse employee of a retail company was able to conceal the theft of items of inventory by entering adjustment transactions to the inventory transactions to the inventory transaction file indicating that the items had been damaged or lost. What control would have prevented the adjustments from being recorded?

Question

Quizplus · Accepted Answer

Requiring separate authorization for input of adjustment transactions would prevent an employee from being able to make adjustments without oversight or approval. This control ensures that another individual checks the validity and justification for the adjustment, reducing the opportunity for fraudulent activity. The other options - using a check digit, parity check, or edit check - would not necessarily prevent unauthorized adjustments or fraudulent activity.

A Warehouse Employee of a Retail Company Was Able to Conceal