1. The business has no cameras or security devices at its warehouse. 2. Managers are expected to grow business or be fired. 3. A worker sees other employees regularly take inventory for personal use. 4. No one matches the cash in the register to receipts when shifts end. 5. Officers are told to show rising income or risk layoffs. 6. A worker feels that fellow employees are not honest.
1. The business has no cameras or security devices at its warehouse. 2. Managers are expected to grow business or be fired. 3. A worker sees other employees regularly take inventory for personal use. 4. No one matches the cash in the register to receipts when shifts end. 5. Officers are told to show rising income or risk layoffs. 6. A worker feels that fellow employees are not honest.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments
Section: Chapter Questions
Problem 11CYBK
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Question
The fraud triangle asserts that the following three factors must exist for a person to commit fraud. A. Opportunity B. Pressure C. Rationalization. Identify the fraud risk factor (A, B, or C) in each of the following situations.
![1. The business has no cameras or security devices at its warehouse.
2. Managers are expected to grow business or be fired.
3. A worker sees other employees regularly take inventory for personal use.
4. No one matches the cash in the register to receipts when shifts end.
5. Officers are told to show rising income or risk layoffs.
6. A worker feels that fellow employees are not honest.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32e6db58-1884-4ceb-b66b-d1b107bd96ec%2F7f776ec2-210f-41e5-926e-6db55aaf34ad%2Fca30o_processed.png&w=3840&q=75)
Transcribed Image Text:1. The business has no cameras or security devices at its warehouse.
2. Managers are expected to grow business or be fired.
3. A worker sees other employees regularly take inventory for personal use.
4. No one matches the cash in the register to receipts when shifts end.
5. Officers are told to show rising income or risk layoffs.
6. A worker feels that fellow employees are not honest.
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