Asset

Misappropriation
Presented By: Yash Thakkar
Membership No: MRA CPA(Australia) 0001
 Fraud
• An willful, intentional act to cause loss to one by
deception and conceal act.

• Fraud has been in existence since being of

commerce

• Various reason for person to commit fraud are ;

o Greed & Materialism
o Imperative Goals
o Ego
o Entertainment
o Punishment
Fraud Tree of ACFE

* Figure from ACFE 2014

 Asset Misappropriation
• Theft from company by employee
• Misuse of company resources
• Small but highest number of incident
• 85 % of all the frauds
• Least Median Loss
o Examples
• Bribes, Gifts for favour
• Stealing of Cash
• False performance
• Giving company goods for free
• Inflated/bogus reimbursement claims
 Types of Asset
Misappropriation
• Skimming
• Lapping
• Fraudulent disbursements
• Billing schemes
• Check tampering
• Expense reimbursements
• Payroll schemes
• Cash larceny
Economic Impact and
Financial Implications

* Figure from ACFE 2014

 Cases
• Enron Scandal

• Tyco

• Berni Madoff

• 2G spectrum
 Detection
• Data Analysis

• Surprise Audits

• Fraud Vulnerability Reviews

• Ethical Hacking of system

• Internal Audit
 Prevention
• Create a code of conduct
• Education and Training
• Separation of duties
• Authorization controls
• whistleblowing policy & Hotline
• Implement a comprehensive recruitment policy
• Continues supervision
 Conclusion
• Asset Misappropriation Costly Affair

• Better to Prevent

• Once occurred it can have termite effect

• Awareness
 Acknowledgement

I would like to personally thank all my faculties, ICAI, Baroda Brach of ICAI and its supporting staff
for organizing 61st batch of Forensic Audit & Fraud Prevention. This course have enlighten me with
immense knowledge on frauds, equipped me with fraud detection skills and improvised my thinking
on how frauds can be prevented.

Thank you