Liodorova, JūlijaBarkauskas, MariusŠneidere, RutaState Police of Latvia Economic Crime Enforcement DepartmentForensic Science Centre of Lithuania Economic Expertise DivisionFaculty of Business, Management and Economics of University of Latvia2021-09-092021-09-092021Liodorova, J., Barkauskas, M., Šneidere, R. (2021). Detecting Asset Misappropriation: Forensic Accounting. Socrates. 2(20). 287–300. https://doi.org/10.25143/socr.20.2021.2.287-3002256-0548287–300https://dspace.rsu.lv/jspui/handle/123456789/6275The main task of the investigation of asset misappropriation is the correct classification of a crime: identification of the fact of misappropriation and determination of the amount of misappropriated assets. Specificity of asset diversity, asset accounting requirements, and a wide range of misappropriation opportunities require specialised knowledge in accounting and economics that investigators often lack. The aim of the study is to increase the knowledge of investigators in forensic accounting in order to increase effectiveness of investigations in detecting asset misappropriation. In this article, the authors, Latvian and Lithuanian accounting experts, talk about typologies of asset misappropriation and ways to detect misappropriation. The authors have compiled a list of red flags for misappropriation of assets and proposed an algorithm for determining the shortage or surplus of assets using forensic accounting methods. Research methods include: qualitative and quantitative methods of economic science, analysis of international standards and scientific literature, and graphical analysis.Electroniceninfo:eu-repo/semantics/openAccessAttribution-NonCommercial 4.0 Internationalhttp://creativecommons.org/licenses/by-nc/4.0/Socrates 2021, 2 (20)asset misappropriationforensic accountingshortageconcealment typologiesinfo:eu-repo/semantics/articlehttps://doi.org/10.25143/socr.20.2021.2.287-300