Multiple Choice
Which element of the fraud triangle can cause managers to make mistakes and errors that harm the organization or employees?
30
views
6. Internal Controls and Reporting Cash
Fraud and the Fraud Triangle
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
When does a conflict of interest occur for an employee?
A
When the employee follows all company policies and procedures.
B
When the employee's personal interests could improperly influence their professional decisions.
C
When the employee receives a promotion based on merit.
D
When the employee takes a vacation approved by their supervisor.
Verified step by step guidance1
Understand the concept of 'conflict of interest' in a professional setting. A conflict of interest occurs when an individual's personal interests have the potential to interfere with their professional responsibilities or decisions.
Analyze the given options to identify which scenario aligns with the definition of a conflict of interest. Focus on situations where personal interests could improperly influence professional decisions.
Option 1: 'When the employee follows all company policies and procedures' - This does not indicate a conflict of interest as the employee is adhering to rules and guidelines.
Option 3: 'When the employee receives a promotion based on merit' - This is a fair and professional scenario, not a conflict of interest.
Option 4: 'When the employee takes a vacation approved by their supervisor' - This is a standard practice and does not involve personal interests improperly influencing professional decisions. Therefore, the correct answer is Option 2: 'When the employee's personal interests could improperly influence their professional decisions.'
4:54mWatch next
Master Fraud and the Fraud Triangle with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Fraud and the Fraud Triangle practice set
Problem sets built by lead tutorsExpert video explanations