Forms for Noncash Asset Transfer and Misappropriation Facilitation | CFE Exam Preparation

Forms for Noncash Asset Transfer and Misappropriation Facilitation

Question

The forms that allow noncash assets to be moved from one location in a company to another can be used to facilitate the misappropriation of those assets are called:

Answers

Explanations

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A. B. C. D.

C

The correct answer is C. Asset requisition.

Asset requisition forms are used to transfer noncash assets from one location to another within a company. These forms can be used to facilitate the misappropriation of assets because they provide a means for an employee to move an asset without proper authorization or approval.

For example, an employee might use an asset requisition form to transfer a piece of equipment from one department to another, but instead of actually moving the equipment, the employee might steal it and sell it for personal gain. Similarly, an employee might use an asset requisition form to transfer inventory to a different location, but instead of actually transferring the inventory, the employee might simply take it and use it for personal purposes.

Fake sales and inventory usages are also methods that can be used to misappropriate assets, but they do not involve the use of asset requisition forms. Fake sales involve creating false sales transactions in order to steal money or goods, while inventory usages involve using company inventory for personal purposes without authorization.