Misappropriation can be understood as the unlawful, improper or
unauthorised use of funds. In other words, it can be understood as
'stealing' of money from bank account or funds or other
property for personal use.
Under the New South Wales
Crimes Act, (1900) fraudulent misappropriation is a criminal
offence. It has a maximum penalty of imprisonment of up to seven
years. Asset misappropriation fraud can occur when an employee
steals from within the organisation for personal interests.
Notably, misappropriation includes cash theft such that the cash
flow of an organisation suffers. It cannot involve stealing of
physical assets like stationery items.
Sometimes, employees may make false expense claims. Payroll
fraud and data theft are also examples of misappropriation. In this
article, we will discuss some points in relation to
misappropriation of assets and funds.
