risk
Internal fraud — asset misappropriation, embezzlement, forgery
Employees defraud the entity for financial gain: embezzlement or theft of company/client funds, fraudulent expense/payroll claims, forgery to obtain unauthorized disbursements, bribery/kickback schemes, insider trading on own account, and wilful tax evasion.
In catalog since 2026-09-17T22:28:00Z · Last changed 2026-09-17T22:28:00Z (f368a6cce277)
Record JSON · Open in map · Data retrieval guide
Catalog revision: 791ff2dd3a45707290badee660f185e514d15f1cf518908628f425c2f2c56ee4. A connection does not establish full coverage.
Attributes
- category
- operational
- domain
- Governance, Policy & Oversight
- Financial Reporting Controls (SOX)
- Risk Assessment & Management
- taxonomy
- basel-operational-risk
- coso-erm-risk
- sox-rmm-assertion
- inherent_rating
- high
Details
- risk_id
- fraud-internal-misappropriation
- category
- operational
- likelihood
- medium
- impact
- high
- inherent_rating
- high
- treatment
- mitigate
- taxonomies
- basel-operational-risk
- coso-erm-risk
- sox-rmm-assertion
Source
No record-specific source URL is provided.
Connections
- UC-GOV-37 — Operate insider-threat and threat-awareness programs mitigates Internal fraud — asset misappropriation, embezzlement, forgery
- strength
- primary
- rationale
- An insider-threat program with defined indicators, reporting channels, and response detects and deters insider theft and fraud.
- UC-FIN-03 — Perform and review account reconciliations mitigates Internal fraud — asset misappropriation, embezzlement, forgery
- strength
- related
- rationale
- Independent cash/account reconciliation detects embezzlement and misappropriation.
- UC-FIN-07 — Control automated processing and resolve exceptions mitigates Internal fraud — asset misappropriation, embezzlement, forgery
- strength
- related
- rationale
- Three-way match and tolerance checks block fraudulent or duplicate disbursements.
- UC-FIN-10 — Safeguard assets and stored financial data mitigates Internal fraud — asset misappropriation, embezzlement, forgery
- strength
- primary
- rationale
- Restricting physical custody and performing counts prevents and detects theft/embezzlement of assets.
- UC-GOV-04 — Set tone at the top: integrity, ethics, and risk-aware culture mitigates Internal fraud — asset misappropriation, embezzlement, forgery
- strength
- related
- rationale
- An ethical culture, code of conduct, and disciplinary follow-through deter the rationalization leg of insider fraud.
- UC-GOV-31 — Maintain access control, identity, and personnel security policies mitigates Internal fraud — asset misappropriation, embezzlement, forgery
- strength
- related
- rationale
- Least-privilege authorization and personnel screening/termination requirements reduce insider-fraud opportunity.
- UC-FIN-04 — Authorize transactions with attributable approvals mitigates Internal fraud — asset misappropriation, embezzlement, forgery
- strength
- primary
- rationale
- Authorization before execution prevents unauthorized disbursements and forgery.
- UC-FIN-05 — Segregate incompatible financial duties mitigates Internal fraud — asset misappropriation, embezzlement, forgery
- strength
- primary
- rationale
- Custody separated from recording and reconciliation prevents concealed asset theft.
- UC-RISK-12 — Assess and mitigate fraud risk including management override mitigates Internal fraud — asset misappropriation, embezzlement, forgery
- strength
- primary
- rationale
- Fraud risk assessment plus anti-override controls (journal-entry and significant-estimate review) directly detect and deter employee embezzlement, forgery and unauthorized disbursements.
- UC-GOV-08 — Segregate conflicting duties and areas of responsibility mitigates Internal fraud — asset misappropriation, embezzlement, forgery
- strength
- primary
- rationale
- Separating initiate-versus-approve prevents one person from both perpetrating and concealing misappropriation.
- UC-ACCESS-15 — Design control activities over technology access mitigates Internal fraud — asset misappropriation, embezzlement, forgery
- strength
- related
- rationale
- Access control activities limiting unauthorized access reduce opportunity for insider misappropriation.
- UC-GOV-07 — Hold individuals accountable for control responsibilities mitigates Internal fraud — asset misappropriation, embezzlement, forgery
- strength
- related
- rationale
- Accountability, performance incentives, and disciplinary consequences deter insider misappropriation.