Question: Rationalization for fraud can fall under two categories: no harm and no responsibility. Assume an employee is directed by management to reduce recorded expenses at

Rationalization for fraud can fall under two categories: no harm and no responsibility. Assume an employee is directed by management to reduce recorded expenses at year-end by insignificant amounts individually, but which are material in total. How might the employee justify her actions if questioned by the auditor with respect to no harm and no responsibility? What stage of moral development in Kohlbergs model is best illustrated by the employees actions? Why?

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