The organization contracted with an outside vendor to maintain food items for employee purchase in the dining room. Payment for food was through a kiosk and was on the honor system. After several weeks of shortages, two employees were fired for taking food without paying for it. This is an example of what type of fraud?

Question

Social Studies

Amari Norman

17 April, 04:53

The organization contracted with an outside vendor to maintain food items for employee purchase in the dining room. Payment for food was through a kiosk and was on the honor system. After several weeks of shortages, two employees were fired for taking food without paying for it. This is an example of what type of fraud?

+4

Answers (1)

Know the Answer?

German Mcguire · Answer 1

Asset misappropriation.

Explanation:

Asset misappropriation is the most common type of fraud that people does. It is an fraudulent activity which occurs when any property of the company is stolen or is misused for some personal use.

In the context, two of the employees did fraud by not paying for the food they had. Payment of food at the office canteen was made though a kiosk and it was honorary. Such an example of fraud is called asset misappropriation.