Fraudulent Misappropriation of Company Assets
Question
If the assets are intentionally purchased by the company but simply misappropriated by the fraudster, this is referring to as:
Answers
Explanations
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A. B. C. D.A
The correct answer to this question is B. Asset receiving scheme.
An asset receiving scheme occurs when a fraudster intentionally misappropriates assets that are legitimately acquired by the company. This scheme involves stealing or diverting assets after they have been received by the company, but before they can be recorded properly. Common examples of asset receiving schemes include stealing or misusing cash, supplies, or other physical assets.
In an asset receiving scheme, the fraudster may use a variety of methods to steal the assets. For example, they may falsify receiving reports or shipping documents, or they may create fake vendors or employees to receive payments or purchase orders. Alternatively, the fraudster may simply steal the assets and cover up their theft by altering accounting records or destroying evidence.
It is important for companies to implement strong internal controls to prevent asset receiving schemes, including segregation of duties, regular audits, and thorough background checks on new employees and vendors. In addition, companies should encourage employees to report suspicious activity and provide a confidential hotline or other reporting mechanism for whistleblowers. By taking these steps, companies can reduce the risk of asset misappropriation and protect their financial resources.
