06 - Fraud Flashcards
1
Q
What is fraud?
A
Deliberate deception intended to gain and advantage
2
Q
What are the three elements of the fraud triangle?
A
Opportunity, Motive/pressure & Rationalisation
3
Q
What is oppertunity?
A
The chance to commit fraud without being caught
4
Q
What is motivation/pressure?
A
When an otherwise trustworthy employees might be tempted to with the right motivation
5
Q
What is rationalisation?
A
Even with the right opportunity and motivation, most people will not commit fraud unless the can justify it to themselves that it is the right thing to do
6
Q
What are the two main types of fraud?
A
Monetary fraud (stolen cash) & Inventory fraud (stolen inventory)
