The classification of the specific type of fraud that is alleged is important to ensure that the correct investigation and data collection methods are used. The fraud tree is a framework that is used to categorize the type of fraud that is being investigated. The fraud tree has the following three main branches:

• Corruption
• Asset misappropriation
• Financial statement fraud

You are a new manager at the XYZ Accounting firm. Your team has been asked to analyze the fraud tree (asset misappropriation) and write a brief report. Your report about the fraud tree will be presented to senior leadership. Select 1 box from each branch (cash, inventory, and all other assets and fraudulent disbursements). Include the following in your 5-page analysis:

• Your definition of the schemes from the fraud tree (i.e., you need 3 different schemes from different branches)
• A real-world example from your research about the fraud schemes that you chose
• An overview of the results of the investigation from the standpoint of conviction, termination, fines, or other measures
• Potential measures that could have prevented the fraud scheme