What are the potential pressures for Chris to commit fraud?
The potential pressures that could have led Chris to commit fraud might have included the financial pressure of having to support a family and take himself through school (WELLS, 2001). He might also have been dissatisfied with not having received any raise in wages even after having worked in the firm for more than a year. He is the most talented in his team, with his capabilities surpassing even those of his superiors. This might add to his feeling of not being paid according to his worth.
What are the potential opportunities for Chris to commit fraud?
Chris was more knowledgeable about the system than all the other staff in the firm. He therefore, must have known how to override the system and engage in unwarranted transaction (Fawcett & Provost, 1997). The phony credit card number must have presented him with another opportunity to possibly embezzle the funds of the company. He also had control over many accounts that were held by the firm’s clients, from which he could have siphoned funds without being detected.
What potential rationalizations could Chris use to commit fraud?
The rationalizations that Chris might use to justify fraud are that that he is not paid in accordance with the functions he performs in the company (Sitorus& Scott, 2008). The accusation made against him of dealing with sites that did software and music piracy might have made him resentful and want to engage in fraud so as a form of retaliation. The damages done by his actions might be insignificant, causing him to feel that he will not be caught.
What are some of the symptoms that fraud potentially exists in this situation? Based on these symptoms, do you believe that it does exist? Why or why not?
The symptoms of fraud that are evident in this situation include the changes in Chris’ behavior (Gramling & Myers, 2003). He has changed the position of his monitor in order to block colleagues and has frequent lunch escapades. Furthermore, he has purchased the latest technology devices, something that would not be possible if he were to rely on his wages alone.
I believe that Chris is involved in fraud, as his change of behavior is very suspicious. His increased frequency of going out for lunch might be him going out to make shady deals. Most of his new fancy gadgets are music related pointing to the possibility that he is involved in music piracy. His history of having been accused of piracy is also incriminating (Gramling & Myers, 2003).
Fawcett, T., & Provost, F. (1997).Adaptive fraud detection.Data Mining And Knowledge Discovery, 1(3), 291–316.
Gramling, A., & Myers, P. (2003). Internal auditors’ assessment of fraud warning signs: implications for external auditors. CPA JOURNAL, 73(6), 20–25.
Sitorus, T., & Scott, D. (2008). The roles of collusion, organizational orientation, justice avoidance, and rationalization on commission of fraud: a model based test. Review Of Business Research, 8(1), 132–147.
Wells, J. (2001). Why Employees Commit Fraud. Journalofaccountancy.com.