Discussion and 2 replies | Accounting homework help

   Discussion 

Go  to the Association of Certified Fraud Examiners (ACFE) website and  watch the animation concerning the Fraud Triangle. Discuss the  following:
    1. Does the Fraud Triangle seem a reasonable paradigm for the causes of fraud? Explain.
    2. Does the Fraud Triangle have wider applications than just business fraud? Discuss.
    3. Is the Triangle consistent with a Christian worldview? Discuss.
    4. Have you ever experienced the forces of the Fraud Triangle in a personal or professional setting? Discuss

Link

https://www.acfe.com/fraud-triangle.aspx

Post by classmate 1

1: Does the Fraud Triangle seem a reasonable paradigm for the causes of fraud?
I think as a paradigm, it kind of makes sense. As a visual representation, it doesn’t seem to make sense though, because it seems to me that the factors that cause someone to commit fraud seem to have a set order. The triangle does show them well, and does exhibit them in a way that looks nice to your eyes, but doesn’t show this order very well. I feel like some sort of flow chart type of visual aid would be better, to show that the first step in moving toward fraud for normal people would be the percieved financial need, then moving on to the percieved opportunity, and then onto rationalization. This progression isn’t shown well through a triangle, because there is no directional flow. 

2: Does the Fraud Triangle have wider application than just business fraud?
The way I see it, it is how most humans will justify any sin of the flesh. They first find a “need”, or a physical desire. Then they discover a way in which that desire can be fulfilled. Then by having these two together, it isn’t too hard for the individial to justify the action and make it seem reasonable, then act on it. This definitely works for examples like theft and lying, but can go for most sin. 

3: Is the triangle consistent with the christian worldview?
Considering that the last question was explained through a Christian lens, purely by coincidence, that seems like good enough proof that this is certainly similar to how people work from a Christian point of view. The steps just make to much sense and line up too well with the justification of many sins. Because of this, it was automatically the option in my mind that made the most sense to explain it all in question 3. 

4: Have you ever experienced the forces of the fraud triangle in a personal or professional setting?

I feel like someone always feels some level of temptation, due to the true evil of the sin that all people struggle with. I recently recieved a company card, and was given that because it was more convenient than having a mentor or supervisor order parts for my work project for me, or pieces I need for my office. I was given a budget for office necessities, and I definitely stuck to it, but there was always the temptation there to go get something cool and bill it under my office supplies. I actually ended up buying myself a new keyboard that was fairly expensive in the end, and although I used it for work type stuff, I didn’t bill it under my office supplies, because I know it wasn’t exactly neccessary, and was just something that I would enjoy having rather than actually needing to complete my work. 

Post by classmate 2

1. Does the Fraud Triangle seem a reasonable paradigm for the causes of fraud? Explain.

The Fraud Triangle system seems plausible in my opinion. The triangle consists of first, Pressure. It explained some of the reasons why people commit fraud, which can be: inability to pay bills, maintain a business partnership, gambling, drugs, etc. After that, they look for an Opportunity to steal the money. They gave an example of people who work at the bank and how they would not be able to escape from the crime once it would be recorded in the financial statement. Lastly, even though these people committed a serious crime, they try to justify their actions by using Rationalization. They try to apply logic and understandable reasons for what they did, instead of pointing at themselves as criminals. With this being said, I believe that these three are related somehow and they, yes, can be considered as a reasonable paradigm for the causes of fraud.

    2. Does the Fraud Triangle have wider applications than just business fraud? Discuss.

Yes, definitely. Let us imagine the kids from poorer countries who suffer from diseases and are constantly fighting hunger. Because they live in critical conditions (Pressure), they must steal food from local stores (Opportunity), but they might not see that as a bad thing since they are just trying to survive (Rationalization). There are countless of scenarios that could apply this system, but with this single example, we were able to understand that the Fraud Triangle system works for other things besides business fraud.

    3. Is the Triangle consistent with a Christian worldview? Discuss.

I think we can connect both. For example, when people sin or when they are having a hard time in their lives (Pressure), those who believe in God, go to the church looking for answers, salvation (Opportunity). After that, they could feel better for confessing to God, and because they did that, that they can forgive and accept themselves, as if they were saying, “I´m a human, it’s normal to make mistakes”(Rationalization).

    4. Have you ever experienced the forces of the Fraud Triangle in a personal or professional setting? Discuss

I believe so. Although I cannot recall any specific scenario at the moment, I can say that I usually do not have any regrets regarding past events because I always keep in mind that there is no need to torment yourself with things that already happened, and if they happened like that it’s probably because they were supposed to be like that. Which, for me, is a strong concept of Rationalization to comfort myself and live a more “carefree” life.