Multiple Choice
Which of the following is an example of a best practice strategy to prevent fraud?
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6. Internal Controls and Reporting Cash
Fraud and the Fraud Triangle
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Which of the following is NOT one of the three elements of the Fraud Triangle in financial accounting?
A
Opportunity
B
Pressure
C
Rationalization
D
Compliance with HIPAA Security Standards
Verified step by step guidance1
Understand the Fraud Triangle: The Fraud Triangle is a model used in financial accounting to explain the factors that lead to fraudulent behavior. It consists of three elements: Opportunity, Pressure, and Rationalization.
Define each element: Opportunity refers to the ability to commit fraud due to weak internal controls or oversight. Pressure refers to financial or personal stress that motivates someone to commit fraud. Rationalization is the justification or reasoning that makes fraudulent behavior seem acceptable to the perpetrator.
Analyze the options provided: The options include Opportunity, Pressure, Rationalization, and Compliance with HIPAA Security Standards. Compare each option to the elements of the Fraud Triangle.
Identify the outlier: Compliance with HIPAA Security Standards is unrelated to the Fraud Triangle. HIPAA pertains to healthcare data security and privacy, not financial fraud.
Conclude that Compliance with HIPAA Security Standards is NOT one of the three elements of the Fraud Triangle, as it does not align with the model's components.
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