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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following tactics may reduce risks of fraud in supplier delivery according to the fraud triangle framework?

Relying solely on verbal agreements with suppliers

Implementing segregation of duties in the purchasing process

Eliminating periodic audits of supplier transactions

Allowing a single employee to approve and receive deliveries

Previous problemNext problem

Verified step by step guidance

Understand the fraud triangle framework, which consists of three elements: opportunity, pressure, and rationalization. Fraud is more likely to occur when these elements are present.

Analyze the options provided in the question to determine which tactic aligns with reducing opportunities for fraud, as this is a key element of the fraud triangle.

Evaluate the tactic 'Implementing segregation of duties in the purchasing process.' Segregation of duties reduces opportunities for fraud by ensuring that no single individual has control over all aspects of a transaction, such as approval, ordering, and receiving.

Consider why relying solely on verbal agreements, eliminating periodic audits, or allowing a single employee to approve and receive deliveries may increase the risk of fraud. These practices create opportunities for fraud by reducing oversight and accountability.

Conclude that implementing segregation of duties is the most effective tactic to reduce fraud risks in supplier delivery, as it directly addresses the opportunity element of the fraud triangle.