When situational pressures and perceived opportunities are low and personal integrity is high, occupational fraud is much more likely to occur than when the opposite is true.
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A. B.B
The statement suggests that occupational fraud is more likely to occur when situational pressures and perceived opportunities are low and personal integrity is high. This statement is not accurate and therefore, the answer is False.
Situational pressures and perceived opportunities are two of the three components of the "fraud triangle," which was introduced by criminologist Donald Cressey. The third component of the fraud triangle is rationalization. According to the fraud triangle, when an individual is under high situational pressure and perceives an opportunity to commit fraud and can rationalize their actions, they are more likely to commit fraud.
In contrast, when situational pressures and perceived opportunities are low, the motivation to commit fraud is reduced, and the individual is less likely to commit fraud. Additionally, if the individual has high personal integrity, they are less likely to rationalize unethical behavior and are more likely to resist the temptation to commit fraud, even when the opportunity presents itself.
Therefore, the correct statement is that when situational pressures and perceived opportunities are high and personal integrity is low, occupational fraud is much more likely to occur than when the opposite is true. This is because individuals who experience high levels of situational pressure, perceive opportunities to commit fraud, and have low personal integrity are more likely to rationalize unethical behavior and engage in fraudulent activities.