Inventory Fraud

| Codification Research organization| size up mockery| | By:Severin Konan| 10/5/2011| Memorandum ACCT 813 1 University driving force University Park, Illinois 05/10/2011 To: TJ Wang From: Severin Konan Subject: scrutinise Frauds Codification Research System After attending the New Yorks training seminar on the Codification Research System as it relate to kindle animal fraud, it appears that the nigh common fraud that occurs at furnish corporations is addition misappropriation. According to the Association of Certified Fraud Examiners, more than than 91% of all internal fraud schemes involved an asset misappropriation. The average loss from an asset misappropriation is about $150,000. asset misappropriations include the misuse or theft of assets or line belonging to a comp all. Considering the importance of the topic, I decided to distribute what I learned with my colleagues. * I.

scrutinise Fraud According to the component 330-10-05, Overview and Background, inventory is The aggregate of those items of tangible personal property that cede any of the following characteristics: a) Held for sale in the ordinary argument of credit line b)  In process of production for much(prenominal) sale c) To be currently consumed in the production of goods or services to be available for sale. Who extracts stock-take fraud? Anyone who arouse physically name at or controls the purchase of inventory has the opportunity to steal it. Employees commit different types of fraud depending on their access to the inventory or the business system. For example, a acquire officer will unremarka bly find it difficult to make up inventory ! records, a sales rep may completely eat access to sales records, and so they will have to commit different type of fraud. Types of Inventory fraud Inventory fraud is the misappropriation of inventory items by an employee. In most cases, the inventory item is stolen for use or sold. The one-third major(ip) types of inventory fraud are: A. Inventory...If you want to get a full essay, order it on our website: OrderEssay.net

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