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Fernando’s Fraud Triangle

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In 240 words please discuss below:

Fernando's Fraud Triangle

Fernando's Fraud Triangle is a retail establishment that has been experiencing lower revenues in the last six months, even though sales are up to 21.1 %.

Fernando's sells whatever products you want to sell and takes cash, credit cards, and checks.

All three categories-cash/checks/credit cards-have remained consistent with no significant increase-while sales are up.

There are three employees and all have access to the register and can override refunds and any other items that need to be charged back.

You have been called in as the Fraud Examiner to see who has their fingers in the till.

"Mitch" -

47 Years old; 14.2 years with the company/full time employee
Recently divorced/ pays child support for two kids
Wages are garnished by the courts for payment
Drives a 2014 Jag-u-Ar
Just bought a new home
Makes $82,282 a year
Loves to dress in style
Loves the night life

"Crystal" -

31 Years old; 10.8 years with the company/full time employee
Married/mother of two children
Husband has a full time job
Makes $62,262 a year
Drives a 2013 Volvo
Recently bought a new home
Loves to dress in style
Loves the night life

"John"

21 years old; 5.3 years with the company/part time employee
College student/accounting
Just bought a 2013 Hyundai Santa Fe
Lives with his parents
Pays for school
Makes $28,282 a year, part time
Single
Loves to party and dress nice

Applying the fraud triangle, who has been stealing the funds?

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Solution Summary

The expert examines Fernando's fraud triangle. The response addresses the query posted in 281 words with APA references.

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The response addresses the query posted in 281 words with APA references

//Fernando is a retail organization suffering from lower revenues even though the sales are high. In this regard, the further text examines the three employees in question, Mitch, Crystal and John with the help of a Fraud Triangle Model. //

The fraud triangle is a model that provides the justification for committing fraud and has three main elements, which are pressure, ...

Solution provided by:
Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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