Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Posts Tagged ‘fraud triangle

Fraud Triangle – a case study

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Amy Wilson’s story of her embezzlement and the journey she has taken since then provides insight to the fraud triangle.

That’s the concept which says for a fraud to flourish, three factors need to be present:

  • Opportunity – the ability to do something wrong. Usually this is accompanied by the ability to hide doing so or get away with it undetected.
  • Motivation – the need to do something wrong.
  • Rationalization – the ability to persuade oneself that this isn’t fraud.  This isn’t wrong. In fact, taking this money is perfectly okay.

In this situation, her opportunity to commit fraud is quite visible. 

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Written by Jim Ulvog

March 26, 2013, 8:58 am at 8:58 am