Question

If an employee is determined to have been under pressure to commit the crime, had the opportunity to commit the crime and has complete rationalization for committing the crime, then the employee is caught in a(n):_____________.

Answer 1

The employee is caught in a(n) fraud triangle.

Explanation:

The fraud triangle is a model that is designed to clearly explain why the worker/employee decides to commit fraud in their workplace.  

According to "Statement on Auditing Standards (SAS) no. 99", the auditors design the financial statement audits to have a reasonable chance of detecting misstatements in the financial reports and commit fraud risk. The causes of fraud behavior are as follows:

i) Unshareable financial need

ii) Opportunity

iii) Rationalization

These demand and opportunity causes an employee to commit crime.