Albrecht developed the fraud scale, which includes the following components:1 pointsituational pressures, perceived opportunity, and personal integrity.high personal debt, living beyond one’s means, drug or alcohol problems.situational pressures, personal integrity, and criminal record.None of the above are the components for the fraud scale.7.Question 7

Which of the following is true concerning the fraud scale developed by Albrecht?1 pointSituational pressures are not important when integrity is examined in the fraud scale.The fraud diamond and its addition of capability, was based on criticism of both the fraud triangle and fraud scale.Personal integrity was added, and rationalization was deleted from the fraud triangle.None of the other answers are the components of the fraud scale.

Which of the following statements is true about theFraud Scale1 pointIt identifies those conditions lowering fraud risk,tipping the scales against the likelihood of fraudIt was developed by Wolfe and Hermanson in the 2000s in the spirit ofCresseyIt mirrors the fraud triangle with the exception ofintegrity being substituted for rationalizationThe fraud scale balances low pressure against low opportunity as a basisto minimize fraud risk

Large frauds are typically associated with all of the following except:1 pointLack of segregation of duties and responsibilities.Placing undeserved trust in key employees.Operating on a crisis basisWorking with management to set realistic goals

Opportunity, Financial Pressure, and Rationalization are the three main factors contribute to fraud activity. In your view, discuss the factor that you believe is the most crucial to creating a fraud. Provide examples to support your conclusion and defend your choice in the discussion.

Fraud risk factors – events or conditions that indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud.