Question

in EConnect JACCOUNTIN MINI-EXERCISES M5-1 Matching Circumstances to the Fraud Triangle Match each of the following circumstances to the corresponding element of the fraud trianel entering the appropriate letter in the space provided. A. Incentive 1. Employee has significant personal debt. 2. One employee receives and deposits customer checks. 3. CFO feels she is underpaid relative to other financial officers. 4. Manager approval is not required for expense reports. B. Opportuniny C. Rationalize

Answer 1

Solution:

1) Incentive

2) Opportunity

3) Rationalization

4) Opportunity

　

Explanation: the presence of opportunity, incentive, and rationalization which are elements of the fraud triangle drastically increased the probability of fraud. An opportunity used by an employee use to make a big amount of money by revenue manipulation. When an employee has huge personal debt, it creates an incentive for the fraud. Rationalization has its own significance as employee is capable of creating any kind of justification for their fraudulent activities, thus they often don’t consider themselves as criminals.