Which measure aids in preventing inventory fraud?

Keeping detailed records of inventory transfers is essential in preventing inventory fraud because it establishes a clear audit trail for how inventory is handled within an organization. This measure enhances accountability, making it more difficult for unauthorized or fraudulent transactions to occur without detection. When every move of inventory is recorded, discrepancies can be tracked back to the source, allowing companies to identify and investigate potential fraud immediately.

Additionally, maintaining detailed records facilitates effective inventory management, improves accuracy in stock levels, and provides a method for conducting regular reconciliations. It enables companies to compare actual inventory levels against recorded data, ensuring that any unusual patterns or discrepancies can be investigated swiftly.

Other options, such as allowing unrestricted employee access to storage areas or creating unregulated access for vendors, could lead to opportunities for theft or manipulation of inventory records, thereby increasing the risk of fraud. Furthermore, limiting inventory checks to an annual basis also reduces the frequency with which discrepancies can be detected. Regular monitoring and detailed documentation are key defenses against inventory fraud, ensuring that any irregularities are addressed promptly.