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 of the following is a challenge related to customers in sales that can contribute to the risk of fraud, according to the Fraud Triangle?

Customers providing complete and accurate documentation for every transaction

Pressure from customers to manipulate sales figures to secure discounts or better terms

Strict adherence to internal controls by customers

Customers always paying invoices on time

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Verified step by step guidance

Understand the Fraud Triangle: The Fraud Triangle consists of three elements that contribute to fraud—Pressure, Opportunity, and Rationalization. Pressure refers to external or internal forces that motivate someone to commit fraud.

Analyze the options provided in the question: The correct answer should align with one of the elements of the Fraud Triangle, specifically 'Pressure' in this case.

Evaluate the option 'Pressure from customers to manipulate sales figures to secure discounts or better terms': This option directly relates to the 'Pressure' element of the Fraud Triangle, as customers may exert pressure on sales personnel to manipulate figures.

Consider the other options: 'Customers providing complete and accurate documentation for every transaction' and 'Strict adherence to internal controls by customers' do not align with the Fraud Triangle elements. Similarly, 'Customers always paying invoices on time' does not contribute to fraud risk.

Conclude that the correct answer is the option that reflects 'Pressure' as described in the Fraud Triangle, which is 'Pressure from customers to manipulate sales figures to secure discounts or better terms.'