Embezzlement

Embezzlement occurs when a person steals assets that have been entrusted to him, falsifying financial records to conceal the theft. Examples of embezzlement are:

In these examples, the individual has a fiduciary responsibility to guard the assets placed in his care, and breaches that responsibility by stealing them.

Embezzlement is a criminal offense. However, many organizations simply fire employees found to have committed embezzlement, rather than prosecuting them. By doing so, employers hope to keep the matter quiet, so that outsiders are not aware of the lack of controls at the company.

Related Courses

Fraud Examination 
Fraud Schemes 
How to Audit for Fraud