conversion, embezzlement and padded payroll are:
illegal
conversion, embezzlement, and padded payroll are
Conversion, embezzlement, and padded payroll are all types of fraudulent activities that involve manipulating financial resources for personal gain.
1. Conversion: Conversion is a term used to describe the act of unlawfully taking someone else's property or assets and using them for personal benefit. It typically involves the misappropriation or theft of cash, securities, or other valuable assets. To identify instances of conversion, you can look for unusual or unauthorized transactions, missing or unaccounted-for assets, or discrepancies in financial records. Conducting regular audits, implementing segregation of duties, and enforcing strict internal controls can help detect and prevent conversion.
2. Embezzlement: Embezzlement refers to the act of misappropriating funds or property entrusted to someone's care, typically by an employee or someone in a position of trust. It involves the unauthorized use or theft of funds, often through systematic manipulation of financial records to hide the theft. To detect embezzlement, it is important to regularly review financial statements, conduct surprise audits, implement strong internal controls, and enforce checks and balances within the organization.
3. Padded Payroll: Padded payroll refers to a fraudulent practice where an individual or group of individuals inflate the number of employees, their wages, or work hours in order to extract excess funds from an organization. This can involve creating fictitious employees, paying unauthorized bonuses or overtime, or manipulating attendance records. To identify padded payroll schemes, you can compare the number of employees and wages paid with attendance records, review payroll reports for anomalies or irregularities, and conduct periodic reviews of employee information. Implementing stringent hiring and payroll procedures, performing regular payroll audits, and separating payroll duties can help prevent and detect this type of fraud.