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CS Professional · Internal and Forensic Audit · Audit and Investigations

A forensic auditor at Bharat Agro Pvt. Ltd. finds that a clerk raised payments to a fictitious vendor. The auditor notes that the clerk had access to vendor master creation and payment release, faced personal debt, and justified the act as 'the company underpays me'. Which set correctly matches these observations to the fraud triangle?

Personal debt is the pressure, the combined access to vendor creation and payment release is the opportunity, and the belief that the company underpays him is the rationalisation. Together these are the three elements of the fraud triangle.

  1. AOpportunity: debt; Pressure: access to both functions; Rationalisation: underpayment belief
  2. BPressure: debt; Opportunity: access to both functions; Rationalisation: underpayment beliefCorrect
  3. CRationalisation: debt; Pressure: underpayment belief; Opportunity: access to both functions
  4. DPressure: access to both functions; Opportunity: underpayment belief; Rationalisation: debt

Explanation

Personal debt is the pressure or motive. Access to vendor creation and payment release without segregation is the opportunity. Thinking the company underpays him is the rationalisation used to justify the act. The other options misplace one or more elements.

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