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

In the context of fraud and the fraud triangle, which of the following is eliminated by portfolio diversification?

Unsystematic risk

Opportunity for fraud

Pressure to commit fraud

Rationalization of fraudulent behavior

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Verified step by step guidance

Understand the fraud triangle, which consists of three elements: opportunity, pressure, and rationalization. These are the conditions that must be present for fraud to occur.

Recognize that portfolio diversification is a financial strategy aimed at reducing risk by spreading investments across various assets or industries.

Differentiate between types of risk: systematic risk (market-wide risk that cannot be eliminated) and unsystematic risk (specific to a company or industry, which can be reduced through diversification).

Analyze how portfolio diversification impacts unsystematic risk by reducing exposure to individual company or industry-specific risks, thereby eliminating this type of risk.

Conclude that portfolio diversification does not directly address the elements of the fraud triangle (opportunity, pressure, rationalization), but it specifically eliminates unsystematic risk.