Questions On The Fraud Triangle Essay
1. Like fuel, air and heat come together to make fire, like likelihood of fraud increases when the three elements of the fraud triangle come together. Analyze how the three elements of the fraud triangle are important and how all three elements were present in Helen’s case.
The three elements of the fraud triangle are Motivation or Pressure, Opportunity and Rationalization. After reading the case, it was revealed that all of the three elements are present the Helen’s fraudulent activities.
Motivation: This is a reason for why the fraudsters commit frauds. It provides the basis for the individual to commit the unethical act. It is found that most times greed is related to the fraud motives. The perception of a need or pressure is a key factor which caused the fraudsters to commit a fraud. In Helen’s case, it was found that Helen had family problems. Her husband was a substance abusive; her children were suffering from health and behavioral issues. Helen had also unpaid medical bill. These are the factors that motivated Helen to commit a fraud. Although, Juan was aware about Helen’s problems and that she needed extra money, but he did not take any control measures to prevent Helen’s motivation to commit a crime.
Opportunity: It is one of the elements of the fraud triangle. It may be defined as an environment of favorable condition that allows the fraud to be committed (Tessier, n.d.). In the Helen’s case, it was found that she had this opportunity…