Asset misappropriation schemes were the "middle children" of the study; they were more common than fraudulent statements and more costly than corruption.
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A. B.B
The statement is true. According to the Report to the Nations published by the Association of Certified Fraud Examiners (ACFE), asset misappropriation schemes are the most common type of occupational fraud, occurring in 86% of cases studied. This type of fraud involves the theft or misuse of an organization's assets, such as cash, inventory, equipment, or intellectual property, for personal gain.
In comparison, fraudulent statements (financial statement fraud) are less common, occurring in only 10% of cases studied. This type of fraud involves the manipulation of financial statements to mislead stakeholders about an organization's financial performance or position.
Corruption, on the other hand, is less costly than asset misappropriation but more costly than fraudulent statements. Corruption involves the abuse of power or influence for personal gain, such as accepting bribes, kickbacks, or other forms of illicit payments.
Overall, asset misappropriation schemes are the most prevalent and costly type of occupational fraud, and organizations should take steps to prevent and detect them. This includes implementing internal controls, conducting regular audits, and providing fraud awareness training to employees.