Question

In: Accounting

Describe some social conditions within the office that can lead to a high -fraud environments?

Describe some social conditions within the office that can lead to a high -fraud environments?

Solutions

Expert Solution

Fraud is an act of deliberate deception in order to gain an advantage.

Fraud committed by an individual consists of three components:

1. The individual had an opportunity to deceive.

2. There was a lot of pressure on the individual to show good results.

3. The fraudster rationalizes his act due either to poor tone from top management, or his spiteful relations with his managers.

The social conditions in the office which leads to the high fraud environment are:

1. Lack of adequate internal controls like job rotation, separation of duties, adequate documentation provides opportunities to potential fraudster to take advantage of the situation.

2. When the top management does not exhibit ethical and honest behavior in its dealings, the middle and lower level staff tend to follow the lead.

3. In many companies the employee's bonuses and incentives are highly dependent on the financial results of the company or the market price of its share. Due to this employee's might be tempted to manipulate the books of accounts for receiving more incentives.


Related Solutions

The “Fraud Triangle” models the interplay between the three conditions that lead to fraud: (a) incentives/...
The “Fraud Triangle” models the interplay between the three conditions that lead to fraud: (a) incentives/ pressures; (b) opportunities and (c) attitudes/ rationalisations. Use Appendix 1 of ASA 240 to classify the following examples of risk factors relating to misstatements arising from fraudulent financial reporting as an example of either: incentives/ pressures; opportunities or attitudes/ rationalisations. Note: In answering this question please write the letter that denotes the statement followed by either incentive/ pressure; opportunity/; or attitude/ rationalisation A. Management...
1.) Within the framework of the Five-Forces Model of Competition, describe industry conditions that would lead...
1.) Within the framework of the Five-Forces Model of Competition, describe industry conditions that would lead to the highest level of profitability for industry participants. What about the lowest level of profitability? What are the differences between these two conditions? Your answers will be short essays and should be three full paragraphs or longer.
what is fraud triangle? what 3 pressure can lead to the fraud?? advantages and disadvantages of...
what is fraud triangle? what 3 pressure can lead to the fraud?? advantages and disadvantages of each method of accounting information system
Describe some of the factors that may lead to lower profits when unemployment is too high;...
Describe some of the factors that may lead to lower profits when unemployment is too high; Similarly, describe some of the factors that could lead to lower profits when unemployment is too low. Finally, explain how this limits the ability of policy-makers to push for full employment and instead may give rise to cycles of rising employment followed by lowering employment.
Please describe three hazardous physical and/or social environments in your neighborhood.
 1) Please describe three hazardous physical and/or social environments in your neighborhood. 2) Are features of places really that important for health – or should we focus primarily on the individuals who live in them? Justify your response using information from the case study and your textbook. 3) What are some public and/or private policies that could help improve neighborhoods in ways likely to improve health?
how can social intelligence lead to power
how can social intelligence lead to power
Anthropology: What are the social and environmental conditions that lead to child malnutrition in malawi according...
Anthropology: What are the social and environmental conditions that lead to child malnutrition in malawi according to pattern?
What are some physical, psychological, social, other factors that can lead to sexual dysfunction. Please discuss...
What are some physical, psychological, social, other factors that can lead to sexual dysfunction. Please discuss if this condition can be altered if a person changes his/her partner? Please give a thorough explanation and list any reference used
What are some ways that new species can arise? Describe how natural selection can lead to...
What are some ways that new species can arise? Describe how natural selection can lead to evolution. What are genes and genetic diversity? What is the relationship between genes and evolution?
How can teachers create effective learning environments? What are some key attributes of effective learning environments?...
How can teachers create effective learning environments? What are some key attributes of effective learning environments? How can teachers assess the environments they create?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT