What type of scheme did Jackson commit when a warehouse receiving clerk stole inventory and manipulated receiving reports to conceal the theft?

• A. An asset transfer scheme
• B. A noncash larceny scheme
• C. A purchasing and receiving scheme
• D. None of the above

Answer: (C)

This question tests how to classify fraud based on where the deception happens. When a warehouse receiving clerk steals inventory and then alters receiving reports to hide the theft, the deceit centers on the purchasing and receiving process and its records. That pattern—exploiting the receiving function and falsifying receiving documents to conceal missing stock—is exactly what a purchasing and receiving scheme describes. An asset transfer scheme would focus on moving assets to another location to siphon them off, not primarily on manipulating the receiving records. A noncash larceny involves stealing inventory itself, but the defining feature here is the concealment through the receiving documents, which points to a purchasing and receiving scheme.