Jan. 24, 2011
When evaluating this case using the three elements of the fraud triangle I have concluded that the potential pressures for Chris to commit fraud are greater than for others. The pressure is from Chris himself because he wants what others have or what he doesn’t have. This is due to the fact that Chris is young and impressionable may feel as though he doesn’t make enough money to obtain the material possession he desires or see others with. He may also be of the mindset that “he wants it now” it being the latest technology. This younger generation seems to feel entitlement instead of working and earn it. This may be due to their upbringing. Although ...view middle of the document...
Chris’s opportunities are open to because he has a relationship with his supervisor Jonathon. Jonathon is furthering the bad parenting that is going on for this generation. Like the parents of this generation try to be more like friends to this generation than parents, so is Jonathon trying to be friends with Chris by not writing him up and filing it in his personnel file. This action has probably given Chris in his mind the green light to do what he is going to do because he is cool with his supervisor and he will not have any consequences for his actions like some parents do with their children today. The children of this generation can do more wrong than we could think of letting on do and yet they are still given the latest and greatest whatever it may be.
The potential rationalizations that Chris could use to commit fraud are greed, selfishness and the power of knowing he could defraud his employer. Chris could rationalize that he isn’t hurting anyone just getting what is owed to him since the company doesn’t want to pay him what he is worth. As stated in the textbook, “I pay more than my fair share of taxes. The rich don’t pay enough taxes. The government wastes money. I “work” for my money.” He may have even convinced himself that he will pay it all back to the company when he gets a raise. Fraudsters always have a different perspective on “their” wrong doing.
(Fraud Examination, 3rd Edition. South Western Educational Publishing, 3/2008. p. 71).
Vbk: 1111803056#page (71)
The symptoms that fraud potentially exists in this situation are the lack of controls, lack of supervision/monitoring and lack of risk management assessment. The lack of controls such as separation of duties because Chris is the best in the area of technology that let him handle the side but he should not have had access to the credit card. This information should have been kept secure and given to one person on the team and this one person should have been tasked with testing with the...