CMA Final · Cost and Management Audit · Forensic Audit
In the fraud triangle associated with Donald Cressey, which element describes a person's ability to justify a dishonest act to themselves, such as 'I am only borrowing the money and will return it'?
It is rationalisation. In the fraud triangle, rationalisation is the offender's mental justification of the act, such as believing the money is merely borrowed, whereas pressure is the motive and opportunity is the control weakness that makes the act possible.
- APressure
- BRationalisationCorrect
- COpportunity
- DCapability
Explanation
The fraud triangle has pressure (motive), opportunity (weak controls) and rationalisation (self-justification). Telling oneself the money is only borrowed is a classic rationalisation. Pressure is the need driving the act, and opportunity is the circumstance enabling it. Capability belongs to the later fraud diamond, not the original triangle.
Did you get it right without looking?
One question tells you little. A timed set on Forensic Audit shows your real accuracy, how long you take and where you lose marks.
More Forensic Audit questions
- During a forensic review of a company, an auditor finds that a payroll clerk is paying salaries to employees who left the organisation and t…
- A forensic auditor applies Benford's Law to the invoice amounts of a vendor and finds that the digit 9 appears as the first digit far more o…
- In digital forensic evidence handling during an investigation, which practice best preserves the admissibility of electronic evidence collec…
- In a forensic investigation of a suspected procurement fraud, an auditor takes a verified bank statement, invoices and vendor master data an…
- In a forensic audit of a manufacturing firm, the investigator finds that the same purchase invoice was paid twice, once through cheque and o…
- A forensic auditor must preserve electronic evidence from a suspect executive's laptop for possible use in legal proceedings. Which action b…