Chapter 1, Problem 3QS

To determine

Concept Introduction:

Fraud triangle: The fraud triangle refers to factors that are responsible for an individual to commit fraud in an entity. Mostly these three elements are determined as risk factors for committing fraud in the company:

• Opportunity: Various opportunities are in a company to commit fraud and these opportunities become the main reason behind the individual doing fraud.
• Pressure: Various pressures are given to the employees during work which can result in committing fraud to cope with the pressures.
• Rationalization: Each person has their reason for doing fraud which means an individual rationalizes to commit fraud when it seems right to them.

To Identify: The fraud triangle risk factor (Opportunity, pressure, or rationalization) for the given situations.