Question

What is the difference between 'Asset Requisitions & Transfer Schemes' and 'Purchasing & Receiving Schemes'? (In your own words and NOT copied from a textbook please)

Answer 1

Asset Requisition and Transfer schemes refer to employee requisition inventory to be moved from one place to another. In this, employee steals the inventory. For eg., an employee asks for more inventory than needed and steals the excess.

Purchasing and Receiving Schemes refers to falsifying incoming shipment records to cover up the theft. for eg., employee receiving the shipment, steals few items from it, however he marks the document sent to accounts payable as full shipment.