Occupational Fraud Tree
Definition
The ACFE's hierarchical classification of occupational fraud schemes, with three top-level branches (asset misappropriation, corruption, financial-statement fraud) subdividing into dozens of named scheme types.
Related terms
- Asset misappropriation
- Schemes in which an employee steals or misuses the employing organisation's resources. The most common fraud category by frequency, encompassing cash theft,...
- Corruption
- Schemes in which an employee misuses their position or influence for personal gain, typically involving an external party. Includes bribery, kickbacks, conflicts...
- Financial-statement fraud
- Intentional misstatement or omission of material information in financial reports to deceive users. Includes revenue overstatement, expense understatement, and asset misrepresentation. Least...
- Median loss
- The loss figure at the midpoint of the distribution of cases, used in the ACFE's data because it is more representative of...
- Skimming
- Taking cash or other payments before they are entered into the accounting records. Leaves no direct accounting discrepancy, making detection dependent on...
Explained in
- The ACFE Occupational Fraud TaxonomyThe ACFE's hierarchical classification of occupational fraud schemes, with three top-level branches (asset misappropriation, corruption, financial-statement fr...