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An Assessment of Fraud and Embezzlement Opportunities in Christian Churches
Mel Ventura,
Hawaii Community Federal Credit Union
Shirley J. Daniel, University of Hawaii At Manoa
ABSTRACT. This research extends the study of employee fraud and embezzlement in the Christian church. The elements of the three-pronged fraud triangle, incentive, opportunity, and rationalization, are present in churches, as they are in many other small organizations. This study focuses on the element of opportunity and the relationship between opportunity and trust in church settings. Data from 41 church members and 32 pastors from churches are analyzed to examine the relationship between trust and the oversight of financial management as well as segregation of duties, which impact the opportunity for fraud. Results indicate that trust plays a significant role in the financial management practices of the churches and makes them more vulnerable to fraud than is desirable. Respondents also indicate that they often donate to the church out of a sense of obedience or obligation rather than to support church operations or programs, which results in a lower monitoring of financial information.
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