State What Kind of Fraud Is One of The Occurrence of Revenue?

Expert Solution

Ans. : Asset misappropriation is a kind of fraud that is Occurrence of Revenue, which can be explained by below points :

* Asset misappropriation :

Some of the more common types of fraud fall into the category of asset misappropriation, which closely-held businesses are most susceptible to.

* Skimming of cash and cash larceny :

This type of asset misappropriation consists of taking cash before it even enters the company’s accounting system.

It’s very hard to uncover because it requires finding evidence of something that hasn’t been recorded yet. And, it doesn’t require a lot of sophistication to execute, making it a popular choice among those that commit fraud.

Examples of asset misappropriate include, check tampering, accounts receivable skimming, fake billing schemes, payroll schemes, fake or duplicate expense reimbursement schemes, and inventory schemes.

* Misuse of company assets :

Another common type of asset misappropriation is the misuse of company assets.

Not only is it problematic since it’s the unauthorized use of company assets, but it can also open up the company to significant liability.

ekkarill92 answered 1 year ago

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