Fraud that involves theft of an entity's assets is called:
A) asset stripping.
B) management fraud.
C) employee fraud.
D) misappropriation of assets.

Question

Quizplus · Accepted Answer

Misappropriation of assets is the fraud that involves theft of an entity's assets, including cash, inventory, or other assets. This type of fraud is committed by employees or executives, and it often involves concealment or manipulation of records to hide the theft. Asset stripping refers to a specific type of misappropriation in which assets are sold off or transferred for below-market value, while management fraud is a broader category that includes financial statement fraud and other schemes.

Fraud That Involves Theft of an Entity's Assets Is Called