CHAPTER 14 EXERCISE 2

E.

I believe this is a rationalization for committing fraud because the accountant

is concerned about his fraud. He appears to believe that this fraud is justified

because he knows that if he brings it up to the auditors, he will lose everything.

Remaining silent is the best way for him to keep his job and save his family from

financial ruin.

F.

This is an opportunity to commit fraud because the accounting records are

said to be either nonexistent or disorganized, making it easier for employees,

managers and others to commit fraud.