Misappropriation of Assets

Better Essays
Introduction Over the past two years, corporate America has endured a plethora of fraudulent acts committed by those of high status within their respective corporations, most of which involve internal fraud. Internal fraud has two main aspects, misappropriation of assets and fraudulent financial reporting, with the focus of this discussion lying within the former. Misappropriation of assets is defined as fraud for personal gain. It is the most common type of fraud found among employees and frequently includes theft of cash and inventory. Misappropriation of asserts, better yet, fraud in general, is relevant to and pivotal for accountants, auditors, and people in business for the simple fact that the losses from fraud affects the economy as a whole. "Fraud is not [just] an accounting problem; it is a social phenomenon." (Wells 2004) Accountants, auditors, and business people all separate but similar responsibilities to uphold, in reference to the general public and agencies overseeing their performance. These responsibilities include possessing integrity, practicing fair disclosure of relevant information, and ensuring that the information provided is reliable. Misappropriation of assets violates all of these responsibilities in the fact that there is no integrity in thievery; concealment of the crime disagrees with the fair disclosure responsibility; and, falsifying documents to avoid detection guarantees unreliable information.
Misappropriation of Assets Some brief examples of misappropriation of assets as committed by lower level employees include theft; misuse, more specifically, personal use of inventory and other assets; and payroll schemes that involve using ghost employees and falsified wages. The answer for preventing fraud can be found within internal control activities. "Separation of duties between authorization, custody, and recordkeeping functions" can help deter these white-collar criminals, along with frequent performance

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Asset misappropriation fraud happens when people who are entrusted to manage the assets of an organization steal from it. Asset misappropriation fraud involves third parties or employees in an organization who abuse their position to steal from it through fraudulent activity. It can also be known as insider fraud. This type of fraud can be committed by company directors, or its employees, or anyone else entrusted to hold and manage the assets and interests of an organization. Asset misappropriation…

    • 328 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    CHAPTER 1 INTRODUCTION 1.1 Introduction The purpose of the study is to explain why the misappropriation of asset happens in the public sector. Asset misappropriation is where the frauds involved the perpetrator employs trickery or deceit to steal or misuse an organization’s resources. The individuals committing asset misappropriation may be among the employees of an organization, customers or vendors of an organization, or may be the individuals unrelated to the victim organization. According…

    • 1584 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Asset

    • 1216 Words
    • 5 Pages

    QUESTIONNAIRE FOR EMPLOYEES Dear Sir/Madam, this is a research cum investigative study being conducted across the hospitality sector of India. The study is solely for educational purposes and complete confidentiality will be maintained. It will take approximately 15 minutes to complete the questionnaire. Kindly extend your co-operation in filling up this questionnaire. If you have questions at any time about the survey or the procedures, you may contact Ms. Navleen Kaur by e-mail at the…

    • 1216 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Current and Noncurrent Assets Paper Johnnie Kersh September 08, 2014 ACC/400 Kylene Smith What is an asset? An asset is an item that is owned by customers and businesses. It has an economic value that can be converted into cash and help repay debts. It also tells how much a business has in value. Accounts receivables, cash, and securities are some examples of assets. Assets are equal to the sum of liabilities, common stock, preferred stock, and retained earnings that…

    • 845 Words
    • 3 Pages
    Powerful Essays
  • Good Essays

    Asset

    • 3932 Words
    • 16 Pages

    The Coca-Cola Company (NYSE: KO) is an American multinational beverage corporation and manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups.[2] The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia.[3] The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more…

    • 3932 Words
    • 16 Pages
    Good Essays
  • Good Essays

    Name: Instructor: Institution: Date: Plagiarism Plagiarism can be defined as the misappropriation of other people works, words or ideas and presenting them as your original work (http://plagiarism.org).Plagiarism has been on the rise in recent times especially in institutions of learning. As a result of this, plagiarism is now considered an immoral act as it is an academic dishonesty and as result stern action are taken on students who engage in plagiarism. The reason why it is regarded as an…

    • 744 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Agricultural Assets

    • 8300 Words
    • 34 Pages

    A practical guide to accounting for agricultural assets November 2009 PricewaterhouseCoopers’ IFRS and corporate governance publications and tools 2009 IFRS technical publications Manual of accounting – IFRS 2010 Global guide to IFRS providing comprehensive practical guidance on how to prepare financial statements in accordance with IFRS. Includes hundreds of worked examples and extracts from company reports. The Manual is a three-volume set comprising: • Manual of accounting – IFRS…

    • 8300 Words
    • 34 Pages
    Powerful Essays
  • Good Essays

    Intangible Assets

    • 4989 Words
    • 23 Pages

    Intangible assets derive their value from the right (claim) to receive cash in the future. 2. All research phase and development phase costs are expensed as incurred. 3. Research phase costs are capitalized as an intangible asset once economic viability. 4. Companies are required to assess the estimated useful life and salvage value of intangible assets at least annually. 5. Impairment testing is conducted annually for both limited–life and indefinite-life intangible assets. 6. Amortization…

    • 4989 Words
    • 23 Pages
    Good Essays
  • Better Essays

    Developmental Assets

    • 2164 Words
    • 9 Pages

    EDU360 Developmental Assets July 2010 Education is one of the most important aspects of any child’s life. One day I hope to be a positive and successful teacher, where children need and want to have me be a part of their learning and successes throughout their lives. Educational philosophy has changed over the decades, and still today, not everyone is in total and complete agreement on the subject. Nevertheless, one thing is certain: philosophy is the groundwork of learning styles. All children…

    • 2164 Words
    • 9 Pages
    Better Essays
  • Powerful Essays

    Asset Forfeiture

    • 1238 Words
    • 5 Pages

    The United States Department of Justice 's Asset Forfeiture Program is a nationwide law enforcement program that has become a powerful weapon in the fight against crime. This involves removing the proceeds of crimes used by criminals to continue activity against society. Asset forfeiture has the impact of disrupting criminal activities that would continue to function if the only tool used was conviction and incarceration of certain individuals. While the Department of Justice program applies only…

    • 1238 Words
    • 5 Pages
    Powerful Essays