Sharon Is the Receptionist and Office Manager for the Best

question 131

Essay

Sharon is the receptionist and office manager for The Best Construction Company. Sharon handles all of the office duties including billing, cash receipts, payroll, depositing checks and preparing the monthly bank reconciliation. She also prepares all of the checks for disbursements and is an authorized signer on all checks under $25,000. For checks above this amount, two signatures are required. She has been a trusted employee of The Best Construction Company for many years, but still makes just a small amount above minimum wage. She is even the godmother to two of the owner's children and often watches them while their parents go on exotic vacations. Sharon is such a good employee that she rarely takes vacations. Since the owner trusts her completely, he concentrates on the construction business and leaves all of the office work to Sharon. He would never interfere with her work since he has very little accounting knowledge. Sharon has recently become a grandmother and enjoys buying her grandchildren expensive toys and clothes. She has just bought a new Hummer for herself and an exclusive condo in the Virgin Islands.
What are the three elements of the fraud triangle? Which element(s) of the triangle are present in this case? Explain briefly.

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Definitions:

Interactional Skills

Abilities used to effectively communicate, engage, and interact with others, including verbal and non-verbal communication.

Psychoanalysis

A therapeutic approach developed by Freud aiming at uncovering unconscious thoughts and motivations through techniques like dream interpretation and free association.

Free Association

A psychoanalytic therapy technique where patients express their thoughts freely, revealing unconscious thoughts and feelings.