Question

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

Explanation:

• a: The high proportion of credit - card payments relative to earnings creates a financial burden, which is a form of financial pressure.
• b: The employee may feel that they are not fairly compensated (while the firm is doing well), which can lead to a rationalization for unethical behavior (e.g., "I deserve more, so I can take some").
• c: An expensive gambling habit creates a financial need (to fund the habit), which is financial pressure.
• d: Having both check - writing/signing and bank - account - reconciling responsibilities gives the employee the opportunity to commit fraud (e.g., write unauthorized checks and cover it up during reconciliation).

Answer:

a. Financial pressure
b. Rationalization
c. Financial pressure
d. Opportunity