1. Low
internal control
Now let's us
picture as if we are in a exam hall, if the invigilator doesn't perform their
well enough, high chances the candidates will having malpractice right? So in
accounting scandal the situation is the same but just venue change, employees
will conduct frauds if the internal control is weak or absent. Besides, if the
superior management themselves shows negative or careless attitudes no doubt
the junior will imitate and practice fraud .
2. Greedy-ness
As human being , if
they are money minded and chasing for materialistic , the current income
resources for them will never be enough .So ,if opportunity given for a “fast
buck ”, no doubt they will take the risk and create frauds. So, as advice,
never ever put a money servant as the one whom responsible for the money.
3. Creating profitable image of company
To having more investor,
the company need to show and promise for a good returns .But, what if the company
is making losses instead of profit? And this is where causes creative
accounting happened where the company overstated their assets and revenue to
mislead the investors think that the company is gaining lot of revenue.
4. Pressure
given from superior management
This occurs commonly for trading company when
the superior set impossible sales targets that stress out the employees which
may lead fraud happens.
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