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 one of the elements typically present in the fraud triangle when fraud occurs?

Rationalization

Incentive/Pressure

Internal Control

Opportunity

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Verified step by step guidance

Understand the concept of the fraud triangle, which is a model used to explain the factors that lead to fraudulent behavior. The three elements are: Rationalization, Incentive/Pressure, and Opportunity.

Rationalization refers to the mindset or justification a person uses to convince themselves that committing fraud is acceptable.

Incentive/Pressure refers to the motivation or external factors that drive an individual to commit fraud, such as financial difficulties or unrealistic performance expectations.

Opportunity refers to the circumstances or weaknesses in internal controls that allow fraud to occur without being detected.

Internal Control is NOT part of the fraud triangle. Instead, it is a mechanism designed to prevent or detect fraud by strengthening the organization's processes and systems.