ABSTRACT
Asset misappropriation is a type of occupational fraud where employees exploit the privileges their positions allow them to steal or misuse the organization’s assets. Computer-Assisted Audit Tools and Techniques auditing, combined with work culture and internal controls, can mitigate huge economic losses. Asset misappropriation fraud’s impact on victim organizations and society at large cannot be overemphasized given the widespread reports of huge economic losses. Asset misappropriation remains the most prevalent type of occupational fraud. Cash schemes include skimming, cash larceny, and fraudulent disbursement. Non-cash schemes include misuse and non-cash larceny. Because fraudulent disbursements are such a large category, the chapter focuses on all other asset misappropriation schemes. The cash and inventory asset misappropriation fraud audit tests address all of the schemes except for Fraudulent Disbursements. Nearly every organization provides assets to their employees for business use, for example, company vehicles, company phones, and company computers.
