CS Professional · Internal and Forensic Audit · Fraud Detecting Techniques
In the fraud triangle, which element is represented by the belief of a finance executive at Deccan Logistics that he is merely 'borrowing' money because the company underpays him?
The element is rationalisation. The executive justifies taking money by calling it borrowing and blaming low pay, which is the mental excuse that makes the act acceptable to him. Pressure is the motive and opportunity is the weak control environment, so neither fits.
- ARationalisationCorrect
- BOpportunity
- CPressure
- DConcealment
Explanation
Rationalisation is the internal justification a person builds to make the dishonest act acceptable to himself. Opportunity relates to weak controls and pressure to a financial or other motive. Concealment is not a side of the fraud triangle.
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