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

Organizations often worry that merit pay increases may lead to which of the following?

Increased pressure to achieve targets, potentially resulting in fraudulent behavior

Lower risk of financial statement manipulation

Reduced need for internal controls

Decreased employee motivation to perform well

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Verified step by step guidance

Understand the concept of merit pay: Merit pay is a system where employees are rewarded based on their performance, often tied to achieving specific targets or goals.

Analyze the potential risks associated with merit pay: Merit pay can create pressure on employees to meet targets, which may lead to unethical behavior, such as manipulating results or engaging in fraudulent activities.

Evaluate the impact on financial statement manipulation: Merit pay increases may heighten the risk of financial statement manipulation as employees or managers might alter financial data to meet performance targets.

Consider the role of internal controls: Merit pay systems may necessitate stronger internal controls to prevent fraudulent behavior and ensure accurate reporting.

Assess the effect on employee motivation: While merit pay can motivate employees to perform well, excessive pressure to achieve targets might have the opposite effect, reducing motivation or leading to unethical practices.