Sale orders also can be altered by employees who seek to obtain merchandise at their employer's expense.

The correct answer is B. False. Option B is correct because the fraud scheme described - employees obtaining merchandise at their employer's expense - is associated with purchase orders, not sale orders. Purchase orders authorize a company to acquire goods from suppliers, making them the logical target for an…

Question

Sale orders also can be altered by employees who seek to obtain merchandise at their employer’s expense.

Options

ATrue
BFalse

How the community answered

(55 responses)

A
18% (10)
B
82% (45)

Explanation

Option B is correct because the fraud scheme described - employees obtaining merchandise at their employer's expense - is associated with purchase orders, not sale orders. Purchase orders authorize a company to acquire goods from suppliers, making them the logical target for an employee seeking to divert merchandise for personal gain.

Sale orders are outbound documents initiated when customers purchase goods from the company, so altering them does not directly enable an employee to receive merchandise at the employer's expense. Confusing sale orders and purchase orders is a common error (option A), but the direction of the transaction matters critically in fraud examination.

Memory tip: Think of it this way - Purchase orders are how a company Pays for goods coming in, which is exactly where an employee would strike to Pocket something. Sale orders flow out to customers, not to employees.

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