Asked by levana znaty on Apr 30, 2024
Verified
Fraud experts often say that there are three primary factors that contribute to employee fraud. Identify the three factors and explain what is meant by each.
Employee Fraud
Dishonest activities conducted by employees to steal or misuse an organization's resources or assets for personal gain.
Primary Factors
Fundamental elements or causes that contribute significantly to a result, situation, or process.
- Enforce internal control measures on financial transactions involving cash.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
The three main factors that contribute to employee fraud are opportunity financial pressure and rationalization. Opportunities that an employee can take advantage of occur when the workplace lacks sufficient controls to deter and detect fraud. Financial pressure occurs when employees want to lead a lifestyle that they cannot afford on their current salary. Rationalization involves employees justifying fraud because they believe they are underpaid while their employer is making lots of money.
Learning Objectives
- Enforce internal control measures on financial transactions involving cash.