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CS Professional · Internal and Forensic Audit · Audit and Investigations

Under the fraud triangle, a finance manager at Bharat Agro Pvt Ltd steals cash because he has heavy gambling debts, knows reconciliations are never reviewed, and tells himself he is only 'borrowing' the money. Which option correctly matches these three elements in order: pressure, opportunity, rationalisation?

Pressure is the gambling debts, opportunity is the absence of review of reconciliations, and rationalisation is the belief that he is merely borrowing the money. These are the three elements of the fraud triangle, which explains why an otherwise ordinary employee commits fraud.

  1. ANever-reviewed reconciliations; gambling debts; 'borrowing' the money
  2. BGambling debts; never-reviewed reconciliations; 'borrowing' the moneyCorrect
  3. C'Borrowing' the money; gambling debts; never-reviewed reconciliations
  4. DGambling debts; 'borrowing' the money; never-reviewed reconciliations

Explanation

Pressure is the financial need (gambling debts). Opportunity is the control gap (reconciliations not reviewed). Rationalisation is the mental justification (calling it borrowing). Other options mismatch the elements.

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