Blathers Co. runs several museum gift shops. The office manager is also the bookkeeper and has been having some trouble paying her personal bills lately. The owner is concerned that the office manager/bookkeeper may be able to commit fraud by stealing money out of the petty cash box and hiding it by recording business expenses in the accounting system so that no one notices the cash is missing.

Required:

1) Describe how this situation relates to two sides of the fraud triangle (opportunity, incentive, and/or rationalization)

2) Describe a control that Blathers Co. could implement to reduce the risks of this type of fraud.