Hans and Frans both work in payroll at Tech Industries. Both employees have shared comments with each other and others in the department about feeling underpaid for the work required and stress level of the job. An external auditor recently discovered paychecks written to an employee not in the company directory. Payroll management discovered that Hans and Frans had colluded to create the fictional employee and collected those checks for themselves. Explain how applying the fraud triangle framework to the situation may have prevented continual losses for the company.

Question

Quizplus · Accepted Answer

The Answer of Hans and Frans both work in payroll at Tech Industries. Both employees have shared comments with each other and others in the department about feeling underpaid for the work required and stress level of the job. An external auditor recently discovered paychecks written to an employee not in the company directory. Payroll management discovered that Hans and Frans had colluded to create the fictional employee and collected those checks for themselves. Explain how applying the fraud triangle framework to the situation may have prevented continual losses for the company.

Hans and Frans Both Work in Payroll at Tech Industries