AUE4863
ASSIGNMENT 2 2026
DUE: 29 JUNE 2026 (MEMO)
, QUESTION 1
Identify and critically discuss four (4) different schemes through which raw
materials and finished goods could be misappropriated at La Batho.
Based on the ACFE Manual content (Learning Unit 2, Topic 2.3: Asset
misappropriation: inventory and other assets), four schemes that could occur at La
Batho are:
1. Non-Cash Larceny Schemes (Write off assets as scrap)
An employee in a senior position, such as a warehouse manager at one of La Batho’s
hubs (Mbombela, Mooketsi, etc.), could write off usable maize, sorghum, or finished
goods as "off-cuts," "damaged," or "scrap."
Application to La Batho
Given the large volume of raw materials moving between hubs and across borders to
Lesotho, Eswatini, and Mozambique, a manager could hide usable stock in delivery
trucks destined for cross-border transport. The stock could then be offloaded at an
unauthorized point along the route for personal gain. The manager would then write off
the material as a loss, concealing the theft.
2. Asset Requisition and Transfer Schemes (False work orders/material
requisitions)
ASSIGNMENT 2 2026
DUE: 29 JUNE 2026 (MEMO)
, QUESTION 1
Identify and critically discuss four (4) different schemes through which raw
materials and finished goods could be misappropriated at La Batho.
Based on the ACFE Manual content (Learning Unit 2, Topic 2.3: Asset
misappropriation: inventory and other assets), four schemes that could occur at La
Batho are:
1. Non-Cash Larceny Schemes (Write off assets as scrap)
An employee in a senior position, such as a warehouse manager at one of La Batho’s
hubs (Mbombela, Mooketsi, etc.), could write off usable maize, sorghum, or finished
goods as "off-cuts," "damaged," or "scrap."
Application to La Batho
Given the large volume of raw materials moving between hubs and across borders to
Lesotho, Eswatini, and Mozambique, a manager could hide usable stock in delivery
trucks destined for cross-border transport. The stock could then be offloaded at an
unauthorized point along the route for personal gain. The manager would then write off
the material as a loss, concealing the theft.
2. Asset Requisition and Transfer Schemes (False work orders/material
requisitions)
