In the context of fraud risk assessment, the "fraud triangle" framework is commonly used to understand the factors that contribute to fraudulent behavior. The fraud triangle consists of three components: pressure, opportunity, and rationalization.
Pressure to commit fraud can arise from various personal or financial situations that create stress or a perceived need to engage in fraudulent activities. An employee believing that a poor compensation package justifies engaging in unethical behavior represents a form of financial pressure, which is one of the key elements in the fraud triangle. This scenario indicates that the employee feels driven to commit fraud due to dissatisfaction with their remuneration, which constitutes a pressure to commit fraud.
References:
* IIA Practice Guide: Fraud and Internal Audit
* COSO Fraud Risk Management Guide