Rationalizing Fraud

Rationalizing Fraud

Rationalization for fraud can fall under two categories: “no harm” and “no responsibility.” Assume an employee is directed by management to reduce recorded expenses at
year-end by insignificant amounts individually, but which are material in total. How might the employee justify her actions if questioned by the auditor with respect
to no harm and no responsibility? What stage of moral development in Kohlberg’s model is best illustrated by the employee’s actions? Why? Your initial post must be in
your own words, be a minimum of 450 words in length, and be supported with a reference.

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