An internal auditor notes that inventory counts are conducted on Mondays only and that all...

The job responsibilities of the warehouse employee, where the same individual is responsible for receiving goods and distributing materials and spare parts, compromise segregation of duties. This lack of segregation poses a significant fraud risk because it allows a single individual to control multiple aspects of the inventory process, increasing the opportunity for misappropriation or manipulation of inventory without adequate checks or oversight.

Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF), Practice Guide: Assessing Fraud Risks