Concept explainers
Fraud Triangle:
It is a model that contain three factors that increases the chances of fraud. Criminologist created the fraud triangle model.
Opportunity: Opportunity is a kind of chance that everyone have. But it is individual decision to taking opportunity in negative sense or in positive sense. Negative opportunity initiates fraudulent practices.
Pressure: Pressure is also based on the thinking of individual. There is positive pressure to complete the work timely and correctly this is positive pressure. And to earn money through short cut involve negative pressure and increase the chances of fraud.
Rationalization: It is the process to make excuses in every situation. This kind of behavior increase the chances of fraud.
To identify: The fraud risk factor exist in the situations.
Want to see the full answer?
Check out a sample textbook solutionChapter 1 Solutions
Financial & Managerial Accounting: Information for Decisions w Access Card, 5th edition, ACC 211 & 212, Northern Virginia Community College
- 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