The Fraud Triangle consists of:
1.Pressure/Incentive
2.Opportunity
3.Rationalization
Rationalization involves the mental process by which individuals justify unethical or illegal behavior, convincing themselves it's acceptable.
Poor compensation of employees is often used by individuals to justify accepting bribes, thinking:
-"I am underpaid, so I deserve extra."
-"The organization is unfair; taking a bribe balances the scales."
Thus, inadequate pay is a classic rationalization red flag that can precede bribery or other unethical conduct.
Option B and C: Opportunity
Option D: Pressure/Incentive
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Kozy
1 week ago