Briefly explain Corruption, Asset Misappropriation and Financial Statement Fraud in brief.

Corruption: There are three types of corruption fraud: conflicts of interest, bribery, and extortion, explained as under: In a conflict-of-interest fraud, the fraudster exerts their influence to achieve a personal gain which detrimentally affects the company. The fraudster may not benefit financially, but rather receives an undisclosed personal benefit as a result of the situation. For example, a manager may approve the expenses of an employee who is also a personal friend in order to maintain that friendship, even if the expenses are inaccurate. Bribery is when money (or something else of value) is offered in order to influence a situation. Extortion is the opposite of bribery, and happens when money is demanded (rather than offered) in order to secure a particular outcome. Asset Misappropriation: The common feature of Asset misappropriation is the theft of cash or other assets from the company. For example: Cash theft - the stealing of physical cash, for example, petty cash, from the premises of a company. Fraudulent disbursements - company funds being used to make fraudulent payments. Common examples include billing schemes, where payments are made to a fictitious supplier, and payroll schemes, where payments are made to fictitious employees (often known as 'ghost employees'). Inventory frauds - the theft of inventory from the company. Misuse of assets - employees using company assets for their own personal interest. Financial Statement Fraud: This is also known as fraudulent financial reporting, and is a type of fraud that causes a material misstatement in the financial statements. It can include deliberate falsification of accounting records; omission of transactions, balances or disclosures from the financial statements; or the misapplication of financial reporting standards. This is often carried out with the intention of presenting the financial statements with a particular bias, for example concealing liabilities in order to improve any analysis of liquidity and gearing.