FRAUD TRIANGLE
Question 1
Fraud triangle to a standard or framework which is used to explain the reasoning, actions, and expectations of a worker to commit fraud in his or her workplace.in addition fraud is a vice or an irresponsible behavior which involves the use of wrong information to deprive a person or entity of money illegally. According to the article fraud triangle is illustrated by the time a series of research is done in the office of Bruce when he attends his sick wife. The analysis on the framework of Bruce tries to reveal the fraud triangle through many irregularities, and this clearly illustrates the meaning of the fraud triangle. Don't use plagiarised sources.Get your custom essay just from $11/page
Question 2
Fraud triangle relates to Bruce following several pieces of evidence examined by Rosette, a veteran adviser in many fraud cases. Bruce, who is the purchasing manager of Chris, is tested when he attends a vacation for his sick wife. First, it is discovered that Bruce does not approve purchases as expected, and he also does not select new vendors as required for his responsibility by the company. Bruce is accused of having to have purchased a large quantity of high-priced computer cleaning kits many than the agency had computers, it is also noticed that the company had multiple purchases under Bruce with approval limits, the purchases without approval amounting to $2,500 clearly defines the relation of Bruce to fraud triangle.
Through various investigations by Rosette to Bruce’s coworkers and superiors and he discovered that there were excessive purchases from one vendor, and besides, Bruce charged higher prices than average in the market; therefore, he is accused of fraud. The fraud triangle is also revealed to Bruce when it is found that he had multiple purchases for a short time, the purchasing agent had personal financial problems and acceleration payment of invoices. These evidences approve Bruce’s fraud triangle.
Question 3
The company some effective measures to control and prevent this situation of fraud and irregularities. Some of the preventive measures could be job rotation. This can help to examine key risks in areas of purchasing carefully. Bruce had remained in the same position for more than six years, and this is expected to be the subject matter of fraud. Another control measure to prevent the situation is closer supervision to the employees and managers by the supervisors to ensure accuracy in work; the close supervision may involve overseeing their duties periodically to examine purchases to control the situation of fraud.
Lastly, the company can adopt the strategy of separating duties among the employees. This can involve different people under different perceptions of responsibilities, for example, taking a person for vender approval, another one for purchase approval, and another one for purchase requisitions. These are some of the preventive measures for handling fraud in the company.