Question

Discussion topic 1: Noncash Asset Misappropriation

Select a type of noncash asset misappropriation fraud scheme and explain how it might occur. Discuss several techniques to detect this type of fraud and at least one internal control that would reduce this fraud risk.

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Answer 1

Discussion topic 1: Noncash Asset Misappropriation

Select a type of noncash asset misappropriation fraud scheme and explain how it might occur. Discuss several techniques to detect this type of fraud and at least one internal control that would reduce this fraud risk.

Answer:-

one of the noncash resource misappropriation extortion conspire that can be thought about is the taking of organization's stocks and resources and moving them in market by the representatives. It was seen if there should be an occurrence of Reebok shoes.

several techniques to detect this type of fraud are as follows :

checking Accounting provision made at the end of Year,

Use of eccentric review methods especially toward the finish of year

Applying more than the required review procedures.

Enlisting a specialist if there should be an occurrence of estimation

Giving less capacity to the workers.

Surprise check of cash as well as employees.

One internal control that would reduce this fraud risk .

Isolation of obligations and in addition Rotation of representatives. Keeping tight authority over workers.