Elements of the Fraud Triangle - 1582 Words

Case 1.9 ZZZZ Best Company, Inc. Delta. Describe the elements of the Fraud Triangle that apply to this case. Assume you are the perpetrator. Is there a better way to perpetrate this fraud? If there is, describe your method. Specify practical recommendations for the client to prevent this fraud from occurring in the future. The first element of the Fraud Triangle in the case of ZZZZ Best, case 1.9 is Incentives/Pressure. Incentives/Pressure- As a result of the pressure placed on a person who is only a teenager in a tough business, one who faced a lack of working capital, the lack of assets and little profit make it difficult for a person of this stature to achieve financing to produce cash flow for sustaining of operations. One†¦show more content†¦Even as the auditor takes the necessary steps to visit one of the sites in which the company has claimed that work is being done, it is easy to pull off a charade by simply bribing and lying to a construction supervisor who is in charge of redoing a building. We simply have two of our confidantes pose as leasing agents, and that they represent a large client whom would like to view the premises for possible purchase. We then get access to the building, post signs up stating that we are doing the work there and make sure the person who is in charge of security is up to date with who the person really is and what we are doing there in the building. It doesn’t take much to get people to do what we want, simply offer them cash and many are willing contributors to our cause. This is one example of many of the opportunities that were available to ZZZZ Best Company back in the 1980’s before Sarbanes Oxley made changes to the accounting and auditing rules. Is there a better way to perpetrate this fraud? If there is, describe your method. I have read this case several times and there are a number of ways that Minkow could have done differently. First, is to be aware of threatening situations. You must be aware of human emotions and the possibility for revenge and retribution. While in his infancy of committing fraud, Minkow stole money from a woman through credit card fraud. She tried several times to get restitution from ZZZZ Best, but she never didShow MoreRelatedThe Fraud Triangle Consists Of Three Elements Perceived Pressures, Perceived Opportunity And Rationalisation2224 Words   |  9 PagesAccording to (Albrecht 2009) the fraud triangle consist of three elements perceived pressures, perceived opportunity and rationalisation. In the case of Bernie Ebbers and Scott Sullivan there appear to be various factors contributing to each of the elements mentioned in the fraud triangle. Perceived Pressure in this case was due to factors of greed, meeting expectations and to a certain degree, living beyond ones means. (Zekany 2002) describe facts surrounding the saga which indicate how greed playedRead MoreFinancial Statements And Report The Illegal Behavior1723 Words   |  7 PagesAs a auditorï ¼Å'it is impossible to report all the frauds that exist in t he financial statements, but auditor has the responsibility to expose the almost fraud in the financial statements and report the illegal behavior, which has a direct significant impact on the financial reporting. However, preventing fraud not only using management method, but also other methods. (1). 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Analyze how the three elements of the fraud triangle are important and how all three elements were present in Helen’s case. The three elements of the fraud triangle are Motivation or Pressure, Opportunity and Rationalization. After reading the case, it was revealed that all of the three elements are present the Helen’s fraudulent activities. Motivation: This is a reason for why the fraudsters commit frauds. It providesRead MorePlutonium: Credit Card and Chris Essay1448 Words   |  6 PagesRunning Head: PLUTONIUM COMPANY Week 3 Case Study: Plutonium Company Fraud Kyle Harrison Keller Graduate School of Management AC 572: Accounting Fraud Examination Concepts Instructor Sherwin Cord January 25, 2009 Week 3 Case Study: Plutonium Company Fraud Plutonium, an Internet start-up company founded in 1988, was in the midst of a massive project to improve integration and internal data quality of its disparate information systems. At the heart of this project was an endeavor to implement