Misappropriation of assets
Misappropriation of assets is theft or misuse of an entity’s assets, which may be concealed by false records or documents. It can involve employees or management and may affect financial statements.
Worked example
An employee diverts customer receipts and alters the receivables ledger to conceal the theft.
Common mistake
Do not assume misappropriation cannot be material simply because it is committed by an individual employee.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |