Question

Three conditions are generallypresent when fraud occurs: a pressure, an opportunity and arationalization. They are frequently referred to as the fraudtriangle. Describe the pressures that can lead to employee fraudincluding financial, emotional and lifestyle pressures. Alsodescribe the opportunities that allow an individual or organizationto commit, conceal and convert the misrepresentation or theft forpersonal gain and describe the rationalizations that allow theperpetrators to justify their illegal behavior. Finally, describehow a good system of internal controls represents the greatestopportunity to reduce or minimize fraud.