Fraud research indicates three conditions must exist before a fraud occurs Pressure Incentive, Rationalization, and Opportunity (a) What do you think were J eacute rme Kerviel 's incentives and rationalizations for committing fraud (b) What created the opportunity for fraud

Question: Fraud research indicates three conditions must exist before a fraud occurs: Pressure/Incentive, Rationalization, and Opportunity. (a) What do you think were Jérme Kerviel's incentives and

Fraud research indicates three conditions must exist before a fraud occurs: Pressure/Incentive, Rationalization, and Opportunity.
(a) What do you think were Jérôme Kerviel's incentives and rationalizations for committing fraud?
(b) What created the opportunity for fraud?

Step by Step Solution

★★★★★

3.47 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Incentive The key incentive appears to be Kerviels desire to be acknowledged and appreciated by his peers and superiors as a skilled and valued trader According to the articles outlining the fraud i... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

841-B-A-A-P (2109).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

What three conditions must exist before a cash dividend is paid?

Access the financial statements of Magna International Inc. for the companys year ended December 31, 2017. These are available at www.sedar.com or the companys website. Review the information that is...

Loss Contingency Presented below is a note disclosure for Matsui Corporation. Litigation and Environmental: The Company has been notified, or is a named or a potentially responsible party in a number...

. Fraud research indicates three conditions must exist before a fraud occurs: Pressure / Incentive , Rationalization, and Opportunity.

On January 24, 2008, Socit Gnrale, Frances second largest bank announced the largest trading loss in history, a staggering 4.9 billion Euro ($7.2 billion U.S.), which it blamed on a single rogue...

Questions 4&5 REQUIRED [1] Using auditing standards or your textbook, define the following control-related terms: [a] Control environment [b] Segregation of duties [c] Restricted access [d]...

Fraud research indicates three conditions must exist before a fraud occurs i.e pressure/incentives, rationalization and opportunity. What do you think were Jerome Kerviels incentives and...

Donald R. Cressey, a noted criminologist, is mostly credited with coming up with the concept of a Fraud Triangle. Albrecht points out that, while researching his doctoral thesis in the 1950s, Cressey...

The Fraud Triangle LO 5-2 Explain the components of the Fraud Triangle. Donald R. Cressey, a noted criminologist, is mostly credited with coming up with the concept of a Fraud Triangle. Albrecht...

BreatheWell is very aware that its scuba diving tanks must be of the highest quality to maintain its reputation of excellence and safety. The company has retained you as a consultant and you have...

Determine the potential and electric field at any point due to an infinite conducting plane lying in the x-z plane. Half of the plane (x > 0) is maintained at +Vo while the other half (x < 0)...

e ^ 7 t + sin ( 7 t ) differentiate

The town's mayor.

Explain how management assertions, general balance-related audit objectives, and specific balance-related audit objectives are developed for an account balance such as accounts receivable.

Identify the management assertion and presentation and disclosure-related audit objective for the specific presentation and disclosure-related audit objective: Read the fixed asset footnote...

Identify the four phases of the audit. What is the relationship of the four phases to the objective of the audit of financial statements?

We are considering buying a parcel of land that has been zoned for multifamily housing. We have determined that the best use of this land is to build condominiums. Our first decision involves the...

A company has a price to earnings ratio of 16 , total earnings (net income) of $426 million and 100 million shares of common stock outstanding. Its stock price is $ (please use or round to 2 decimal...

Question 8: Which of the following two statements is correct? S1: When the currency of a country depreciates relative to other currencies, the country will likely export more of its goods abroad. S2:...