Question

Match each situation with the fraud triangle factor (opportunity, financial pressure, or rationalization) that best describes it. (a) An employee’s monthly credit card payments are nearly 75% of her monthly earnings. select a fraud triangle factor (b) An employee earns minimum wage at a firm that has reported record earnings for each of the last five years. select a fraud triangle factor (c) An employee has an expensive gambling habit. select a fraud triangle factor (d) An employee has check-writing and -signing responsibilities for a small company, and is also responsible for reconciling the bank account.

Answer 1

Answer:

The answers are:

A) Financial pressure

B) Rationalization

C) Financial pressure

D) Opportunity

Explanation:

Financial pressure refers to the fraudster's motive to commit fraud is because they need to obtain money,

Rationalization refers to the fraudster's mindset that justifies him to commit fraud, for him it is OK and fair to do it.

Opportunity refers to the situation that enables fraud to occur, e.g. when someone is responsible for an action and then no on controls those actions.