ACCA Applied Skills · Corporate and Business Law (Global) · Fraudulent and criminal behaviour
Rania, a finance clerk at Zenith Ltd, secretly alters supplier payment details so that invoice payments go to her own bank account. Which of the following best describes the nature of her conduct?
Her conduct is fraud. She acts dishonestly, abusing her position to make a gain for herself at the company's expense. This is deliberate wrongdoing and a criminal offence, not mere negligence, and it does not depend on any shareholder complaint before it is treated as criminal.
- AFraud, because she dishonestly makes a gain for herself by abusing her positionCorrect
- BNegligence, because she breached a duty of care to the company
- CA civil matter only, because no shareholder has complained
Explanation
Dishonestly diverting money to herself through abuse of her position is the essence of fraud, which is a criminal offence. The negligence option is wrong because her act was deliberate and dishonest, not careless. Criminal liability does not depend on a shareholder complaining.
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