Fraud Triangle Assignment Help
Fraud triangle could be explained as the combination of three aspects that are perceived pressure or motivation, perceived opportunity and rationalization. It is effective to analyze a fraud in more effective manner (Albrecht, Albrecht, Albrecht & Zimbelman, 2011). It is because a fraud occurs only if there all these three elements of fraud triangle are presented. Fraud triangles help to explain the nature of occupational offenders, which is supportive in the development of fraud preventive programs (Wells, 2011). The fraud triangle explains the three factors and is applied in the financial reporting fraud and asset related frauds. It depicts that if an organization can find the way for breaking the fraud triangle, by removing one of the elements, then the organization will be able to reduce the potential fraudulent incidents. The removal of opportunity from the fraud triangle is the most important route to deterrence of fraud. The following chart shows the fraud triangle: 
Fraud Triangle (Source: UC Merced, 2012) The above chart depicts that motivation; opportunity and rationalization are the three factors due to which people tend to commit fraud. The internal control system is the best safeguard against these irregular activities and to prevent the firm from fraud. As per Fraud Triangle case study assignment help experts below is the description, how each aspect is used: Motivation: It describes the driving need behind the wrongdoing by an individual.
It is the reason, which motivated the individuals to commit fraud. The lifestyle needs, involvement in illicit activities, and life pressures are some of the major elements, which create the situation of committing fraud. The increase in the cost of living, gambling, restitutions etc increases the expenses and drives the human towards committing fraud (UC Merced, 2012). An employer could identify these needs to fulfil, which is effective to prevent the fraud within the organization. At the same time, identification of these types of activities would also be effective to increase the ability of firm to facilitate effective internal control (Cendrowski, Petro, Martin & Wadecki, 2007). For example, if an individual with lower salary makes elaborated purchases such as expensive restaurant meals, boats and other recreational vehicles etc then it is a clear red flag for fraud. Perpetrators generally give a reason of a need for their offense. Rationalization: This element is used to explain the situation in which fraud has been occurred. It may be a control weakness. Firstly the people start by rationalizing the small amount of misappropriation, which they consider immaterial. This aspect is effective to tell the firm why it should not consider a small fraud to be immaterial (Albrecht, Albrecht, Albrecht & Zimbelman, 2011).
It is because it helps perpetrators to expand rationalize and also their fraud activities, which is not beneficial for the firms’ growth. An effective control environment is essential to manage the rationalization. For example, people can rationalize that it is not fraud and I am going to put the money back when things turn around. Opportunity: It is the condition, which allows an individual to commit fraud. It is the weakness of the internal control structure of the firm. Perpetrators generally test the internal control system of the firm by smaller transactions. If it is discovered then termed as error and if not then a control weakness is identified, which creates the opportunity for fraud (Cendrowski, Petro, Martin & Wadecki, 2007). For example, missing of one small cash transaction from cash book is the smaller transaction, which can be used by perpetrators to test the internal control breakdowns.
References Albrecht, W.S., Albrecht, C.C., Albrecht, C.O. & Zimbelman, M.F. (2011). Fraud Examination (4th ed.). USA: Cengage Learning. Cendrowski, H., Petro, L.W., Martin, J.P. & Wadecki, A.A. (2007) The Handbook of Fraud Deterrence. USA: John Wiley & Sons. UC Merced. (2012). The Fraud Triangle. Retrieved from: http://controls.ucmerced.edu/fraud-triangle.aspx Wells, J.T. (2011). Corporate Fraud Handbook: Prevention and Detection (3rd ed.). USA: John Wiley & Sons. If you looking for business assignment help , marketing, HR and finance case study assignment help then you can contact us. We always delivered the original and quality assignment help paper to our Australia, US and UK students.