Accounting Essay

Review the Robatelli’s Pizzeria Case Study.

Considering the nature of the relationship between Robatelli’s Pizzeria home office and its franchise owners, the company may be quite vulnerable to theft or fraudulent financial reporting committed by these franchise owners.

In 700 to 1,050 words, discuss the following:

Describe three components of the fraud triangle and how each would relate to a franchise owner’s likelihood to defraud Robatelli’s Pizzeria.
Identify three types of fraud to which Robatelli’s Pizzeria may be susceptible.
Indicate whether the fraud is classified as management fraud, employee fraud, vendor fraud, customer fraud, or computer fraud for each.
Suggest an internal control that could be implemented to prevent or detect the potential fraud for each.
Design a 5- to 6-bulleted item code of ethics for Robatelli’s Pizzeria. You may find guidance by searching the Internet for examples.

Submit your assignment.

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Solution Preview

Q1. Describe three components of the fraud triangle and how each would relate to a franchise owner’s likelihood to defraud Robatellis Pizzeria.

The fraud triangle is a model which is created to explain factors which motivate a person to commit fraudulent occupational activities. The triangle is made up of three components whose combination result in fraudulent behavior. The components include: (a) Perceived opportunity, (b) Perceived financial need that is unshareable and (c) Rationalization. The fraud triangle rationalizes the idea of how people who are trusted in an organization become violators of the same trust accorded to them. Part of the rationale is that the persons perceive to have problems which require financial solutions, the issues are said to be perceived since in most cases are beyond the reach of the individual and are not in most cases necessary and that’s why the persons are not readily willing to share them out or ask for financial assistance (Zanero, 2018). Trusted employees are also aware that such financial problems can find a solution if they violate their financial trust.

(1,110 words)