Management and Organizational Studies 3367A/B Chapter Notes - Chapter 9: Purchase Order, Accounts Receivable, Shipping List

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Chapter 9 Noncash assets
Physical assets including inventory and equipment were the most commonly
misappropriated noncash asset
Noncash misappropriation schemes
o Misuse (company supplies, computers, office equipment)
The cost of misuse
Loss of productivity
Need to hire additional employees to compensate
Lost usiess if eployee’s usiess opetes
Unauthorized use of equipment can mean additional wear and
tear sooner or more often
o Unconcealed larceny (walk off with company property)
Greater concern than misuse of assets
Most schemes are not complex
Many of the employees who steal company property are highly trusted
Some employees know their co-workers are stealing but refrain from
reporting it
Assets misappropriated after-hours or mailed to perpetrator
The fake sale
Needs an accomplice
Sale is not rung up but the accomplice takes the merchandise
Accomplice may return merchandise for cash
o Prevention and detection
Physical control (safeguard)
Installation of security cameras
Physical inventory counts in a timely manner
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