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What are several conditions that can lead to fraud?

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What are several conditions that can lead to fraud and to what type of fraud can they lead?

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Solution Summary

Your response is 241 words and describes the two types of fraud and the three conditions that are present when fraud occurs. The interrelation of the types and conditions is discussed.

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There are generally two types of fraud:

1. fraudulent reporting
2. taking assets

The three conditions that are present in a company when fraud occurs are:

1. pressure
2. opportunity
3. rationalization

This is sometimes called the fraud triangle.

The first condition, pressure, can lead to either type of fraud. A company's management can feel pressure to hit an earnings target or budget because ...

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