
Concept explainers
Opportunity, Financial Pressure, and Rationalization are the three main factors contribute to fraud activity. In your view, discuss the factor that you believe is the most crucial to creating a fraud.
Provide examples to support your conclusion and defend your choice in the discussion.

Introduction:-
Fraud is defined as intentional deception with the intent of gaining an unfair or unlawful benefit or depriving a victim of a legal right. Fraud can be a civil or criminal offence (for example, a victim of fraud might sue the offender to stop the fraud or get monetary compensation), or it can be a component of another civil or criminal offence (e.g., a fraud perpetrator can be prosecuted and imprisoned by governmental authorities). Fraud can be committed for monetary gain or other benefits, such as obtaining a passport, travel document, or driver's licence, or for mortgage fraud, in which the offender makes false statements in order to qualify for a mortgage.
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps

- Opportunities for fraudulent reporting are present in circumstances when the fraud is easy to commit and when detection is difficult. An opportunity for fraud would least likely arise from the following situatioarrow_forwardWhat are the three key points about a fraud perpetrator?arrow_forwardExplains these controls and tell why they are important in any fraud situation: a. Preventive controls b. Detective controls c. Leveraging technologd. Identifying the red flags NB: Answer questions a-darrow_forward
- What is the ethical value of applying the Fraud Triangle to assess the risk of material misstatements in the financial statements?arrow_forwardI need the answer as soon as possiblearrow_forwardA reason to believe that a fraud has occurred is calleda. Deliberation.b. Forensics.c. Predication.d. Restitutionarrow_forward
- 1. How do you understand Fraud in your own words? Please provide explanation. 2. How do you understand the Fraud Triangle? Please provide explanation. 3. Favorite topic in Forensic Accounting? 4. What recommendations will you give to prevent fraud? 5. Will you consider becoming a Fraud investigator in the Future? Why or why not.arrow_forwardWhich of the following is NOT a possible legal risk that can arise because of a fraud investigation conducted in an improper manner? A. Forcible entry and detainer. B. Invasion of privacy. C. Defamation. D. Malicious prosecution.arrow_forwardAnswer the following based on the image of the scenario A-Help management understand the issue from Jack’s perspective. Describe the ethical dilemma that Jack faces. What is the issue? Who are the parties involved? If you were Jack, what would you consider when making a decision? B-Help management understand the elements of the fraud triangle in this situation which increase the chances of fraud. Why is this fraud? What are the opportunities, motivations and rationalizations that you see? How does this affect the business financially? C-Help management come up with a plan to minimize the likelihood of this happening in the future. Be sure to mention specific components of the COSO framework.arrow_forward
- Internal control is designed to provide: : A Certainty. B Freedom from fraud. C Reasonable assurance. D Truth.arrow_forwardAy In addition to the fraud triangle, what are a couple other tools used to indicate the potential for fraud. Explain themarrow_forwardFraud experts often say that there are three principal factors that contribute to fraud. Identify and explain each of these factors.arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





