The fraud triangle has been used to identify conditions or circumstances that typically present in frauds. It
Question:
The "fraud triangle" has been used to identify conditions or circumstances that typically present in frauds. It consists of three components, which together may lead to fraudulent behavior: (1) Financial need, (2) Opportunities, and (3) Rationalization.
Q1. Based on the fraud triangle, identify the internal control weaknesses and fraud risk factors that were present in the case. How might these risk factors and control weaknesses contribute to fraud? Q2. Which elements of the COSO framework can be used to develop sound recommendations/solutions? Any suggestions as control mechanisms? How information technologies may be used to prevent and detect frauds? Q3. What role can 1) a manager, and 2) an accountant, play in preventing and detecting fraudulent activities? Q4. If you had to develop a code of ethics/code of conduct for the case firm, what would it look like? Q5. What is the relationship between a strong internal control environment, the internal audit function, and ethical behavior? Is there a connection?
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts