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 statements about the protection of data is true in the context of fraud prevention?

Encryption of data is unnecessary if employees are trusted.

Implementing strong internal controls can help reduce opportunities for fraud by protecting sensitive data.

Only external threats, not internal employees, pose a risk to data security.

Data protection is unrelated to the risk of fraud within an organization.

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Verified step by step guidance

Understand the context of fraud prevention and data protection. Fraud prevention involves safeguarding sensitive data to reduce opportunities for fraudulent activities.

Evaluate the statement 'Encryption of data is unnecessary if employees are trusted.' This is incorrect because trust alone cannot ensure data security; encryption is a critical tool to protect data from both internal and external threats.

Analyze the statement 'Implementing strong internal controls can help reduce opportunities for fraud by protecting sensitive data.' This is correct because internal controls, such as access restrictions, monitoring, and encryption, are essential to mitigate risks and protect data from unauthorized access.

Review the statement 'Only external threats, not internal employees, pose a risk to data security.' This is incorrect because internal employees can also pose risks, whether intentionally or unintentionally, making internal controls vital.

Consider the statement 'Data protection is unrelated to the risk of fraud within an organization.' This is incorrect because data protection is directly related to fraud prevention, as safeguarding sensitive information reduces the likelihood of fraudulent activities.