Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

Financial Accounting

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is NOT one of the three elements of the fraud triangle?

Opportunity

Rationalization

Competence

Pressure

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the concept of the fraud triangle. The fraud triangle is a model used to explain the factors that lead to fraudulent behavior in individuals. It consists of three elements: Opportunity, Pressure, and Rationalization.

Step 2: Define each element of the fraud triangle: Opportunity refers to the ability to commit fraud due to weak internal controls or lack of oversight. Pressure refers to financial or personal stress that motivates an individual to commit fraud. Rationalization is the justification or reasoning an individual uses to make their fraudulent actions seem acceptable.

Step 3: Analyze the options provided in the question. The options are Opportunity, Rationalization, Competence, and Pressure. Compare each option to the three elements of the fraud triangle.

Step 4: Identify the element that does not belong to the fraud triangle. Competence is not one of the three elements of the fraud triangle. It refers to an individual's ability or skill level, which is unrelated to the factors that lead to fraudulent behavior.

Step 5: Conclude that the correct answer is Competence, as it is not part of the fraud triangle's three elements: Opportunity, Pressure, and Rationalization.