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

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Multiple Choice

Which element of the fraud triangle is most likely increased when organizations fail to maintain accurate, relevant, timely, and complete information?

Opportunity

Collusion

Rationalization

Pressure

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Verified step by step guidance

Understand the fraud triangle, which consists of three elements: Opportunity, Pressure, and Rationalization. These elements explain the conditions under which fraud is likely to occur.

Recognize that 'Opportunity' refers to the ability of an individual to commit fraud due to weaknesses in internal controls or systems, such as lack of oversight or poor information management.

Analyze the scenario where organizations fail to maintain accurate, relevant, timely, and complete information. This creates gaps in internal controls, increasing the likelihood of fraudulent activities.

Compare the elements of the fraud triangle. Weak information systems primarily increase 'Opportunity,' as they provide the chance for individuals to exploit the system without detection.

Conclude that the element most likely increased in this situation is 'Opportunity,' as the lack of proper information management directly impacts the ability to prevent and detect fraud.