Essay About Fraud Triangle And Bear Lot Of Pressure

The Fraud Triangle
The leadership style is yet another area where cultural intelligence is required and where local cultures play an important role. After watched the short video about Kirk Arnold’s daily working life, I realized that her leadership style is very highly energetic, highly enthusiastic, and highly motivational. Personally I do not like her management style as it is too intensive for employees and bear lot of pressure to deal things. I remember she always very actively ask her subordinates ‘opinion about certain issues at different situation and interrupt them frequently. To be honestly, I think this action shows no respect to her employee. Even in worse situation, it will lead a business fraud of their decision-making. First of all, The Fraud triangle is a framework designed to explain the reasoning behind a worker’s decision to commit workplace fraud. The three stages, categorized by the effect on the individual, can be summarized as pressure, opportunity and rationalization. In the first step, the pressure on the individual – is the motivation behind the crime and can be either personal financial pressure. The pressure is seen by the individual as unsolvable by orthodox, legal, sanctioned routes and unshakeable with others who may be able to offer assistance. A common example of a perceived unshakeable financial problem is gambling debt and maintenance of a lifestyle. Next is the opportunity to commit fraud, is the means by which the individual will defraud the organization. Opportunity is the element over which business owners have the most control. Limiting opportunities for fraud is one way a company can reduce it. In many cases the ability to solve the problem in secret is key to the perception of a viable opportunity. The opportunity to commit fraud is possible when employees have access to assets and information that allows them to both commit and conceal fraud. Employees are given access to records and valuables in the ordinary course of their jobs. Unfortunately, that access allows people to commit fraud. Managers have become responsible for a wider range of employees and functions. This has led to more access for them, as well as more control over functional areas of companies. Access must be limited to only those systems, information, and assets that are truly necessary for an employee to complete his or her job.