Certified Fraud Examiner Practice

In a purchasing and receiving scheme, falsifying incoming shipment records is a critical component that illustrates how fraud can occur in the procurement process. Organizations rely on the integrity of their receiving documentation to track inventory, manage costs, and ensure they are only paying for goods that have been legitimately received. When records are tampered with, it allows for discrepancies that can lead to financial losses.

By altering or falsifying shipment records, individuals can create opportunities to siphon off goods for personal use or to resell on the black market without proper tracking. This manipulation covers up the fact that actual shipments may not correspond to what is documented, making it difficult for the organization to maintain accurate inventory levels and financial records. Consequently, this type of scheme leads to significant risks, including overpayment, theft, and challenges in maintaining accountability and transparency within the supply chain.

The other scenarios describe standard operational procedures that do not involve deception or fraud. Accurately logging shipments, accepting only approved shipments, and returning products for credit all reflect ethical practices that would contribute to sound inventory management rather than fraudulent activity.