Question

What are the three conditions according to Donald Cressey for fraud to occur?

Answer 1

The following are 3 conditions according to Donald Cressey-

1. Pressure- Employee undergoing some sort of pressure (like money problem) is highly likely to commit fraud.

2. Opportunity-Company with lack of internal control to prevent fraud may result in increased opportunity for fraudster to commit fraud.  

3. Rationalization-Employee believes that they can justify what they are doing like by saying that "they did not get the raise they deserved" or "I work harder then everyone else".