Identify and explain the type of fraud that has taken place. What must have motivated the employee to commit the fraud? Explain your answer. List two contributing factors to the type of fraud that had taken place.
Identify and explain the type of fraud that has taken place. What must have motivated the employee to commit the fraud? Explain your answer. List two contributing factors to the type of fraud that had taken place.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
An employee at an electrical engineering firm was unhappy about being overlooked for a promotion opportunity and decided to resign. He started working at a competing firm in the same city. The former firm soon realized that their innovative designs in engineering solutions were being made available at the new firm where the employee was now working. After a thorough investigation, it was found that the disgruntled employee’s account and password (and therefore his access to confidential designs) were still active. The investigation indicated that the employee had regularly accessed his account and reviewed the confidential designs.
REQUIRED
- Identify and explain the type of fraud that has taken place.
- What must have motivated the employee to commit the fraud? Explain your answer.
- List two contributing factors to the type of fraud that had taken place.
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