(1) The three primary factors that contribute to fraudulent activity are as follows: Opportunity, Financial Pressure,Rationalization.
Work Step by Step
1) Opportunity - When the work place lacks sufficient controls to deter and detect frauds, it gives an Opportunity to the employee to commit a fraud. 2) Financial Pressure - Employees commit fraud because of personal financial problems or too much debt. 3) Rationalization- In order to justify their fraud employees rationalizes their dishonest actions.