Asset Misappropriation Examples:
Clerk stealing cash receipts.
Payroll Clerk creating a ghost employee.
Purchasing Clerk creating a fictitious vendor and false invoice.
Employees “borrowing” equipment, tools, etc.
Sales person purchasing personal items on the Company credit card.
Falsified expense reports.
Corruption Examples:
Purchasing Department Manager awarding a contract to a vendor for a kickback.
Human Resources Director hiring unqualified “friends” to fill positions.
City Council member trading votes for personal favors.
Financial Statement Examples:
Inflating revenues on the financial statements.
Concealing liabilities and expenses.
Improperly valuing assets
Asset Misappropriation Examples:
Clerk stealing cash receipts.
Payroll Clerk creating a ghost employee.
Purchasing Clerk creating a fictitious vendor and false invoice.
Employees “borrowing” equipment, tools, etc.
Sales person purchasing personal items on the Company credit card.
Falsified expense reports.
Corruption Examples:
Purchasing Department Manager awarding a contract to a vendor for a kickback.
Human Resources Director hiring unqualified “friends” to fill positions.
City Council member trading votes for personal favors.
Financial Statement Examples:
Inflating revenues on the financial statements.
Concealing liabilities and expenses.
Improperly valuing assets
Asset Misappropriation Examples:
Clerk stealing cash receipts.
Payroll Clerk creating a ghost employee.
Purchasing Clerk creating a fictitious vendor and false invoice.
Employees “borrowing” equipment, tools, etc.
Sales person purchasing personal items on the Company credit card.
Falsified expense reports.
Corruption Examples:
Purchasing Department Manager awarding a contract to a vendor for a kickback.
Human Resources Director hiring unqualified “friends” to fill positions.
City Council member trading votes for personal favors.
Financial Statement Examples:
Inflating revenues on the financial statements.
Concealing liabilities and expenses.
Improperly valuing assets
5% - applied to 2014 estimated Gross World Product, this translates to potential fraud loss of up to $3.7 trillion worldwide.
Median loss - more than 23.2% of the cases involving losses over $1 million.
Fraud lasted - losses rose with duration of scheme.
Asset misappropriation schemes - fraudulent disbursements, theft of cash receipts, other asset misappropriations.
5% - applied to 2014 estimated Gross World Product, this translates to potential fraud loss of up to $3.7 trillion worldwide.
Median loss - more than 23.2% of the cases involving losses over $1 million.
Fraud lasted - losses rose with duration of scheme.
Asset misappropriation schemes - fraudulent disbursements, theft of cash receipts, other asset misappropriations.
5% - applied to 2014 estimated Gross World Product, this translates to potential fraud loss of up to $3.7 trillion worldwide.
Median loss - more than 23.2% of the cases involving losses over $1 million.
Fraud lasted - losses rose with duration of scheme.
Asset misappropriation schemes - fraudulent disbursements, theft of cash receipts, other asset misappropriations.
Detected by tips - followed by management review (13%) and Internal Audit (16%).
Six departments:
Accounting/Finance
Operations
Sales
Executive/upper management
Customer service
Purchasing
Warning signs – most common behavioral red flag reported in the survey were perpetrators living beyond their means (45%) and experiencing financial difficulty (30%).
Emphasize tips and internal audit
Mention reliance on external audit and fact that detection is low
Employee steals or misuses an organization’s resources.