Name and define the three characteristics identified by Dr. Donald Cressey which are common to embezzlers.
The three names given which are common to embezzlers are opportunities, motivation and rationalization. This is comonly known as fraud triangle.
Opportunity : the opportunity here refers to the opportunity to conduct fraud. As the organization becomes bigger the divisions and departments get larger and managers appointed. The managers are given wide responsibilities and access to information which inturn leads to induce them to commit fraud and conceal them. Therefore the organization must be careful in letting access to information.
2. Motivation : the motivation here refers to the indulge or driving force for the employees to commit fraud. The motivation might eith be financial where he has huge debts,medical bills to be paid off etc. Or it might be on non financial basis where the employee has sexual fulfillment, to cover up his work and potray it as good.
3. Rationalization : rationalization here refers to the employees getting convinced the making fraud is ok for certain reasons and he has his own justification for it. It might be due to a bonus getting delayed and ultimately denied for some reason therfore in order to recover his bonus he might indulge in fraud.Some embezzlers have this thought that the company deserves this for its bad acts and there are some who think that the assets of the company wouldn't affect much with the embezzlement of that employee.
Therefore business owners and executives must take contol over the components of the triangle fraud.
Name and define the three characteristics identified by Dr. Donald Cressey which are common to embezzlers.
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