US CMA Part 2 · Chapter 9 · Question 14 of 23
A payroll clerk who has been diverting small amounts tells herself, "The company underpays me, and I'm only borrowing what I'm owed; I'll pay it back." This reasoning illustrates which element of the fraud triangle?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rationalization
Explanation
Rationalization is the mental process by which a person justifies dishonest behavior as acceptable, such as viewing theft as borrowing or as compensation for unfair treatment. Pressure is the motive (for example, personal debts) and opportunity is the ability to commit and conceal the act.
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