Sam Christian T.

Barro BSA -2
Management 2 February 21, 2022

Opportunity to commit fraud

In an effort to reduce positive accrued charges in order to meet financial objectives, the
CEO asks the overall accounting branch to reallocate a division's charges by a significant
amount. The popular accounting division refuses to grant the request, but magazine access is
granted through the business office. An accountant at a well-known accounting firm is uneasy
about the magazine entries necessary to reallocate divisional charges. He conveys his concerns
to the CFO, who tells him that the entire situation can be improved and that the entries are
required. The accountant contemplates resigning, but he does not have every other step
handled and is anxious about aiding his family.
Because the accountant is concerned about what the CFO is attempting to achieve, this
is a justification for committing fraud. Even though he conveyed his concerns to the CFO, he did
not follow through since he fears he will now not be able to find other work and is concerned
about his own family's well-being if he is laid off. As a consequence, he feels that this deceit is
allowed since he may lose the entire thing if he did not keep quiet, and he wanted to save his
own circle of family from financial collapse.

Rationalization for committing fraud

Accounting records were either non-existent or in such disarray that a significant effort
was necessary to uncover or organize them.
Because the accountant is concerned about his dishonesty, this is an excuse for committing
fraud. He feels that this deceit is acceptable, that he will lose everything, and that the only way
to protect his own family from financial ruin is to remain silent.