Final answer:
Employee fraud is categorized into Corruption, Asset misappropriation, and Financial statement fraud. Asset misappropriation is most common, while financial statement fraud can have significant consequences. Strong corporate governance is essential in mitigating these risks.
Step-by-step explanation:
Employee fraud is often grouped into three main categories: Corruption, Asset misappropriation, and Financial statement fraud. Each of these categories involves a breach of trust and abuse of a company's resources or systems for personal gain. Asset misappropriation is the most common form of employee fraud and includes a wide range of activities from stealing company cash to using company property for personal benefit. Corruption can involve bribery or conflicts of interest. Financial statement fraud, although less common, can have significant impact and involves manipulating a company's financial reporting to present a false picture of its financial health. It's crucial for institutions to maintain strong corporate governance to avoid such issues.