Statistics on fraud show that ________.
A) senior executives commit the highest number of frauds and the senior executives cause the highest losses due to fraud
B) employees below the level of senior executives commit the highest number of frauds and cause the highest losses due to fraud
C) senior executives commit the highest number of frauds and employees below the level of the senior executives cause the highest losses due to fraud
D) employees below the level of senior executives commit the highest number of frauds but the senior executives commit the highest-value frauds

Question

Quizplus · Accepted Answer

Statistics on fraud show that employees below the level of senior executives commit the highest number of frauds, but the senior executives commit the highest-value frauds. This is known as the "fraud triangle," where the opportunity to commit fraud increases with one's level of authority and access to resources, but the motive and rationalization to commit fraud are more common among lower-level employees. Therefore, while senior executives commit fewer overall frauds, the ones they do commit result in higher financial losses.

Statistics on Fraud Show That ________