CASE QUESTIONS In answering the following questions, use the Association of Certified Fraud Examiners (ACFE) "The Fraud Triangle" and the IMA Statement of Ethical Professional Practice for guidance. 1. The "fraud triangle" has been used to identify condition or circumstances that typically present in financial frauds It consists of three components, which together lead to fraudulent behavior: (1) Perceived financial need, (2) Perceived opportunity, and (3) Rationalization. Using the fraud triangle, identify the internal control weaknesses and fraud risk factors that were present in the case. How might these risk factors and control weaknesses contribute to a fraud? 2. What role can management accountants play in preventing and detecting fraudulent activities and other illegal activities? 3. Based on what Cathy has observed, do you think Kimberly is doing something unethical? Do you think Cathy is doing something unethical? Defend your answers. 4. Who is being affected if Kimberly is embezzling funds? Who is being affected by Cathy's decision to keep her concerns to herself? 5. Assume Cathy feels that Kimberly is doing something wrong. What options does she have to handle the situation? Provide at least three possible options. Which of these options do you think would be the best? Why? 6. Assume that Cathy had confided her concerns to you and her desire to come forward and report those concerns. What arguments could you use to help support Cathy in her decision? Provide at least three logical arguments. 7. What do you think Cathy should do in this situation