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 best describes the impacts associated with contractual noncompliance in the context of fraud and the fraud triangle?

It increases the likelihood of asset appreciation and improved stakeholder trust.

It typically leads only to minor administrative delays with no significant consequences.

It has no effect on the organization's financial statements or operations.

It can result in financial losses, legal penalties, and reputational damage for the organization.

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the context of the fraud triangle, which consists of three elements: pressure, opportunity, and rationalization. These elements explain why individuals commit fraud.

Step 2: Recognize that contractual noncompliance refers to situations where an organization fails to adhere to the terms of a contract, which can lead to legal and financial consequences.

Step 3: Analyze the potential impacts of contractual noncompliance, such as financial losses due to penalties or damages, legal repercussions, and harm to the organization's reputation.

Step 4: Evaluate how these impacts align with the fraud triangle. For example, financial losses and reputational damage can increase pressure, while noncompliance may create opportunities for fraudulent activities.

Step 5: Conclude that the correct description of the impacts associated with contractual noncompliance is that it can result in financial losses, legal penalties, and reputational damage for the organization.