You were appointed as a fraud examiner for a large company that manufactures high precision surgical instruments. Prior to your appointment, the company had uncovered the theft of a very large amount of money, most likely by an employee, Mr Bipin Putra. This fraud occurred in the companys accounts department, where Mr Putra was the Senior Accounts Clerk. The company didnt discover the fraud until Mr Putra took was forced to take a few days annual leave the first time in four years. It was during this absence that they discovered that he had been stealing money - probably for at least five years.

After some preliminary investigations, you discovered that Mr Putra had become such a hard-working and trusted employee that his bosses had put him in charge of most of the accounting duties with no, if not, little supervision. These included ordering materials from suppliers, paying bills, balancing and reconciling bank accounts, and handling other cash management chores. Mr Putra also was responsible for the depositing of cash at the local bank. After further investigations, you discovered that, all up, about $1 million ($1 000 000) had been stolen from the company. This money had helped Mr Putra maintain a severe gambling habit, and an extra-marital relationship that included paying rent for a luxury high rise penthouse in the heart of the city and the purchase of a Mercedes sports car.

When the company reported your findings to the police, it was decided to take him to court. He pleaded guilty to one count of theft and numerous counts of check forgery. He was sentenced to five years imprisonment.

Required

1. What were Mr Putras opportunities? (1 mark)

2. What pressures did Mr Putra have to commit the fraud? (1 mark)

3. How did the fact that Mr Putra was a trusted employee give him more opportunity to commit fraud?

(1 marks)

4. The third element of the fraud triangle is Rationalization. Provide an example of how Mr Putra might have rationalized his perpetration of the fraud. (1 mark)