Table of contents

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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

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Multiple Choice

Why is it important for a company to ensure that employees remain with the company, particularly in the context of the fraud triangle?

Short-term employees are always more skilled at detecting fraud than long-term employees.

Long-term employees are less likely to commit fraud because they have a greater sense of loyalty and are more familiar with company policies.

Retaining employees guarantees that fraud will never occur within the company.

Employees who stay longer are more likely to be promoted, which automatically eliminates the risk of fraud.

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Verified step by step guidance

Understand the concept of the fraud triangle, which consists of three elements: opportunity, pressure, and rationalization. These are the factors that contribute to fraudulent behavior.

Recognize that long-term employees often develop a stronger sense of loyalty to the company, which can reduce the rationalization factor in the fraud triangle.

Consider that long-term employees are more familiar with company policies and procedures, which can help reduce opportunities for fraud.

Acknowledge that retaining employees does not guarantee fraud will never occur, but it can mitigate risks by fostering a stable and ethical work environment.

Evaluate the importance of promoting a culture of integrity and implementing strong internal controls to further reduce the likelihood of fraud, regardless of employee tenure.