Accounting for Governmental and Not-for-Profit Organizations

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Read the article “Lessons Learned from Shocking Municipal Fraud Cases” by Drew Adamek in the October 2018 issue of the Journal of Accountancy. You can find the article at www.journalofaccountancy.com/newsletters/2018/oct/lessons-learned-municipal-fraud-cases.html.

The fraud triangle is frequently used to examine why fraud occurs in businesses, governments, and charitable organization. The fraud triangle has three sides—opportunity, pressure, and rationalization. Opportunity focuses on the characteristics of a situation that made it easy for the fraud to occur. This side of the triangle examines factors like the fraudster “being in the right place at the right time” and lack of good internal controls in the organization.

Based on Drew Adamek’s article, provide specifics that indicate why the opportunity often exists in a government for fraud to occur.

Limit your response to 400 words.

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