Question

Jessica Rabbit is the manager of shipping and receiving and has been working at the Leanup Company for thirty years. She rarely calls in sick and gets good performance reviews every year. In the past year, her wife’s company has been in serious financial trouble; they likely will not be able to make the payroll for next month and may have to close down. Which leg of the Fraud Triangle best applies to Jessica's situation?

Question 2 options:

Motive


Opportunity


Rationalization


Financial pressure

Answer 1

The fraud triangle is used to model the causes of frauds in an organization or company.

The scenario in her wife's company shows that the fraud leg that applies to Jessica is pressure.

From the question, we understand that:

• They may not be able to make payroll for next month
• They may likely close down

Financial trouble as used in the question implies that her wife's company are in debts or mismanagement.

This means that Jessica is under pressure to commit fraud in her own company in other to assist her wife's company.

Hence, the leg of the Fraud Triangle best applies to Jessica's situation is pressure

Read more about fraud triangle at:

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