In: Accounting
A profile of fraud perpetrators prepared by the Association of Certified Fraud Examiners revealed that adult males with advanced degrees commit a disproportionate amount of fraud. Explain these findings.
The study suggests that notwithstanding the importance of personal ethics, situational pressures and opportunity contribute greatly to fraud.
SITUATIONAL PRESSURES. As people age, they tend to marry and assume greater responsibilities and are influenced by significant situational pressures. The heads of households tend to feel situational pressures more severely other family members. Since heads of households (in the economic sense) are more often men than women, some of the variance due to gender is explained.
OPPORTUNITY. The real culprit responsible for explaining the loss variance presented in the study is opportunity. Opportunity can be redefined as control over assets or access to assets. Indeed, control and access are essential elements of opportunity. The financial loss differences associated with most of the classifications above are explained by the opportunity factor.
z. Gender. While the demographic picture is changing, more men than women occupy positions of authority in business organizations, which provide them greater access to assets.
aa. Position. Those in the highest positions have the greatest access to company funds and assets.
bb. Age. Older employees tend to occupy higher-ranking positions and therefore generally have greater access to company assets
cc. Education. Generally, those with more education occupy higher positions in their organizations and therefore have greater access to company funds and other assets.