MISSAPPROPRIATION OF ASSETS (EMPLOYEE FRAUD)

Involves theft of an entity’s assets.


Often accompanied by false or misleading records
or documents in order to conceal the facts that assets are missing.

This may include:
 Embezzling receipts
 Stealing entity’s assets
 Lapping of accounts receivable

Responsibility of Management and Those Charged with Governance

MANAGEMENT
To establish a control environment and to
implement internal control policies and procedures designed
to ensure, among others, the detection and prevention of fraud and error.