Sample Solution

Dr. Leiner’s “Understand the Person, Understand the Fraud” concept is based on the idea that fraud can often be prevented by having a better understanding of an individual’s motivations and reasons for committing it. This relates to Cressey’s classic “Fraud Triangle”, which suggests that opportunities to commit fraud will arise when there is pressure, rationalization, and lack of internal controls or supervision. To fully understand these elements requires insight into person’s behavior and psychology from a variety of perspectives such as social, cultural, economic etc. For example, according to Shroff & Pherwani (2016), psychological dynamics such as feelings of entitlement due to unfair treatment could lead people in specific underprivileged groups have higher rates fraudulent activities; whereas Ramchandran et al (2018) discussed how people with lower levels anxiety are more likely to show greater risk-taking behaviors including committing fraud since they don’t fear potential consequences as much than those with higher levels . Understanding this factor enables organizations develop preventive strategies tailored towards individuals instead one size fits all approach.