Question

Liam notices that there are no safeguards over company inventory and tells himself that the company...

Liam notices that there are no safeguards over company inventory and tells himself that the company is probably going to write the inventory off as obsolete anyway. However, he doesn't really need the inventory. Because there is no ________, Liam is less likely to commit fraud.

A. rationalization
B. perceived pressure
C. internal controls
D. perceived opportunity
Business   Accounting   
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Answer #1

Answer : Perceived Pressure

Mainly financial pressures are the reason for commitiing frauds.

there are six most common financial pressures associated with fruad

Lifestyle issues,Greed,poor credit facilities, high bills or debts,personal financial losses

In the above question it is clearly mentioned that, He really does not need the inventory that means he has no financial requirement.

because there is no Perceived pressure he is less likely to committ fraud

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