US CMA Part 2 · Chapter 9 · Question 15 of 23
Which situation is the clearest example of the PRESSURE (incentive) element of the fraud triangle?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A division manager whose bonus and job security depend on meeting aggressive quarterly earnings targets
Explanation
Pressure is the motivation to commit fraud, such as compensation tied to targets, financial difficulties or expectations from analysts. The clerk with incompatible duties and the absence of internal audit illustrate opportunity, and believing that "everyone does it" is a rationalization.
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