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 NOT an element of the fraud triangle?

Incentive

Collusion

Opportunity

Rationalization

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Verified step by step guidance

Understand the fraud triangle: The fraud triangle is a model used to explain the factors that lead to fraudulent behavior. It consists of three elements: Incentive (or Pressure), Opportunity, and Rationalization.

Define each element: Incentive refers to the motivation or pressure to commit fraud, such as financial difficulties. Opportunity refers to the ability to commit fraud due to weak internal controls or oversight. Rationalization is the justification or reasoning that allows the fraudster to feel their actions are acceptable.

Analyze the options provided: Incentive, Opportunity, and Rationalization are all elements of the fraud triangle. Collusion, however, is not part of the fraud triangle. Collusion refers to the act of two or more individuals working together to commit fraud, which is a separate concept.

Identify the correct answer: Since Collusion is not an element of the fraud triangle, it is the correct answer to the question.

Conclude the reasoning: The fraud triangle focuses on individual factors that lead to fraud, while collusion involves multiple parties working together, making it distinct from the elements of the fraud triangle.