A division manager believes that if he fails to meet a very tight budget target, he will be fired. He starts pushing his employees to under-report their hours worked, in order to meet the target. Which element of the fraud triangle is most clearly involved in the division manager's behavior?
A) Pressures or incentives
B) Opportunities to commit fraud
C) Rationalizations
D) Sociopathic behavior

Question

Quizplus · Accepted Answer

The division manager is feeling pressure to meet a tight budget target and believes that his job is at stake, so he is deliberately engaging in fraudulent behavior by pushing his employees to under-report their hours worked. This aligns with the "pressures or incentives" element of the fraud triangle.

A Division Manager Believes That If He Fails to Meet