Question

Using the fraud triangle to evaluate internet fraud.

Answer 1

The fraud triangle defines a model in explanayion of the factors that cause someone to commit occupational fraud. It is inclusive of three components which, together, result to fraudulent behavior:

1. Perceived unshareable financial requirement: The personal requirements of the executive’s may drive them to commit a fraud. The reason is that the executives have a lifestyle they need to uphold in the company and in the society. They will not prefer a situation where they feel inferior to others and thus will use the opportunity accorded to them to make more money

　

2. Perceived opportunity: The opportunity factor is natural, because executives may receive number of opportunities in the company as they understand the internal controls and as well as the command structure of the organization

3. Rationalization: Rationalization has its own significance as again human is capable of creating any kind of justification for their fraudulent activities, thus the executives often don’t consider themselves as criminals. However they think that they are taking a rational approach.