The Association of Certified Fraud Examiners (ACFE) has developed a fraud tree which categorizes types of fraud schemes into the following three primary areas: • Corruption • Asset Misappropriation • Financial Statement (FS) Fraud Previous courses have addressed corruption and asset misappropriation related to fraudulent disbursements and financial statement fraud. This course addresses asset misappropriation – specifically related to inventory and other assets. To identify how fraud can be mitigated, individuals must understand the types of fraud most prevalent to their business. Asset misappropriation is a scheme in which an employee steals or misuses the employing organization’s resources. Considering inventory and other assets, there are multiple methods in which fraud can occur. These extend through the raw materials, work in process, and final goods stages. It can relate to employee theft, vendor fraud or accounting irregularities. This session will focus on the many methods involved in inventory fraud. Field of Study: Auditing