Match each situation with the fraud triangle factor (opportunity, financial pressure, or rationalization) that best describes it.

(a) an employee’s monthly credit card payments are nearly 75% of her monthly earnings. select a fraud triangle factor.

(b) an employee earns minimum wage at a firm that has reported record earnings for each of the last five years. select a fraud triangle factor.

(c) an employee has an expensive gambling habit. select a fraud triangle factor.

(d) an employee has check-writing and -signing responsibilities for a small company, and is also responsible for reconci.

(a) An employee’s monthly credit card payments are nearly 75% of her monthly earnings. select a fraud triangle factor. Financial pressure.

(b) An employee earns minimum wage at a firm that has reported record earnings for each of the last five years. select a fraud triangle factor. Rationalization.

(c) An employee has an expensive gambling habit. select a fraud triangle factor. Financial pressure.

(d) An employee has check-writing and -signing responsibilities for a small company, and is also responsible for reconci. Opportunity.

Explanation:

Fraud refers to obtaining something of value with a false representation of facts.

The fraud triangle factors are:

Opportunity: A situation that allows fraud to happen, for example, there are no internal controls in a company.

Financial pressure: There is a need that takes a person to commit fraud, for example, a debt.

Rationalization: The person that commits the fraud justifies it in his mind, for example, the person needs the money more than the big organization.

answer; ///decision making under risk;

answer decisions made by individual households and firms;