Question

Alice Durant works in the accounts payable department for the BC Group. She recently found out that Della Granger, another A/P clerk, received a bigger raise than she did, even though Durant has been with the company longer and frequently has to correct Granger's errors. Which leg of the Fraud Triangle best applies to Durant's situation?

Answer 1

Answer:

Rationalization

Explanation:

The Fraud Triangle has three legs:

1. opportunity: what circumstances were needed or allowed for the fraud to occur? Weak internal controls, inadequate accounting policies, etc.
2. incentive or pressure: what made the employee think about committing fraud? Financial expectations, bonuses based of performance, etc.
3. rationalization: How does the employee justify to himself/herself committing fraud? My boss or colleagues treat me wrong, everyone else does it, it is the only solution for my problem, etc.