Research Assignment – Asset Misappropriation Conduct some research in the Kaplan

Question

Research Assignment – Asset Misappropriation

Conduct some research in the Kaplan Library accessed through the home area of the course room and locate an article for each of the types of asset misappropriation fraud schemes:

Checklist:

Analyze the asset misappropriation fraud scheme in terms of the three prongs of the fraud triangle, and then discuss methods and techniques that can be used to prevent the fraud from occurring.

Cash Receipts Scheme

Cash Disbursement Scheme

Make sure to use two short citations from your two articles and include an accompanying reference for each in APA format and style on an additional last page

Submit your 2–3 page paper with an additional title and reference page to the Assignment Dropbox.

Explanation / Answer

Research Assignment on Asset Misappropriation conducted at Kaplan Library

Abstract :

In this paper we provide a general overview of asset misappropriation. We discuss the current state of academic and practical knowledge as it relates to asset misappropriation, including what we currently know about asset misappropriation, what research has been done in this area, what is currently missing from the research, and what additional resources are needed in order to continue to provide high quality research on this topic in terms of the three prongs of the fraud triangle, and then discuss methods and techniques that can be used to prevent the fraud from occurring.

Introduction :

The two means through 7 which fraud is committed include the misappropriation of assets and the misrepresentation of financial statements.Here we discuss about the misappropriation of assets.

In this cases, specific assets of the Kaplan Library are taken to directly benefit the individuals committing the fraud. Individuals committing asset misappropriation-type crimes may be: employees of an organization, customers or vendors of an organization, or could be individuals unrelated to the victim organization. The distinguishing elements of asset misappropriation, however, are that an organization’s assets are taken through trickery or deceit, rather than by force.

Misappropriation of assets occurs when an employee steals company assets, whether those assets are of monetary or physical nature. Physical assets of the company include everything from office supplies and office furniture to expensive items in inventory, such as cars or large machinery. With lack of supervision or security, employees could take inventory right out of a facility. However, misappropriation of physical assets includes not only taking items, but also the unauthorized use of company assets.

Monetary assets susceptible to fraud typically include cash or cash equivalents because these items are highly liquid and often easily accessible. With poor internal controls, a company employee could steal checks and cash them for themselves.

In order for fraud to occur, three conditions must exist: rationalization by the person committing the fraud, incentives or pressures to commit fraud, and also the opportunity to do so These factors are commonly known as the Fraud Triangle that is ,

Pressure is typically what causes a person to commit fraud. It is most often financial, such as the

-          An addiction to drugs,

-          Alcohol, or gambling; or

-          desire for expensive luxury items

However, some fraud is committed simply out of greed and with no pressure except the desire to gain wealth.

To preventing fraud, opportunity is the most important factor to consider. If you eliminate opportunities for fraud to be committed, then it can be greatly reduced. Preventing fraud is much cheaper for companies than detecting it later because there is little chance that losses will be recovered once the fraud has already occurred.

Opportunity is therefore where internal controls come into play. The more internal controls a company has designed and 9 implemented, the less opportunity there should be for employees to commit fraud. It is important that there internal controls be effective and efficient in order to gain the most benefits for the company. Internal controls include: segregation of duties, supervision, and information technology controls (passwords, hand scanners, etc.).

Finally, rationalization involves making excuses for why it is acceptable to commit fraud in certain circumstances. A rationalization may be strong, for example a ransom case where someone might die without the money or a medical emergency where money is needed for surgery.

Some of the methods and techniques that can be used to prevent the fraud from occurring,

Institute an employee policy that outlines expected employee behavior anytime they are representing the company, including any mention on their social networks.

Identify assets for which you have responsibility

--Ensure that agency assets such as vehicles, cell phones, equipment, and other agency resources are used only for official business.-

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