Asset Misappropriation Schemes: Short Cases for Use in the Classroom

• In Event: Case Studies - Fraud and Forensic Accounting

Abstract

The purpose of these short cases is to provide instructors with realistic cases illustrating situations where fraudulent activity could occur. One or more of these cases can be used in classes where fraud deterrence and detection are discussed (e.g., IT auditing, accounting information systems, internal auditing, fraud auditing/accounting). The ability to analyze a situation and develop a response to present to a client who suspects or is trying to minimize the opportunity for asset misappropriation in his/her business is an essential skill for future CFEs and any kind of auditor. The cases presented here address the following Asset Misappropriation categories under the ACFE Occupational Fraud and Abuse Classification System (ACFE, 2012): 1) Billing Schemes/Personal Purchases (retail business), 2) Theft of Cash on Hand/Theft of Cash Receipts (banking industry), 3) Fraudulent Disbursement: Improper/Personal Purchases and Reimbursements, Payroll Schemes (construction business), and 4) Inventory, Accounts Receivable, and Accounts Payable (small business—body shop). The cases can be used in small group or individual settings, and implementation guidance is included.

Authors

• Constance M. Lehmann, University of Houston-Clear Lake

• Carolyn Strand Norman, Virginia Commonwealth University