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 is NOT true about fraud?

The fraud triangle consists of opportunity, pressure, and rationalization.

Internal controls are designed to help prevent and detect fraud.

Fraud can only occur in large organizations with complex systems.

Fraud typically involves intentional deception for personal gain.

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Verified step by step guidance

Step 1: Understand the concept of fraud. Fraud typically involves intentional deception for personal gain, and it can occur in any organization, regardless of size or complexity.

Step 2: Learn about the fraud triangle. The fraud triangle consists of three elements: opportunity, pressure, and rationalization. These elements explain the conditions under which fraud is likely to occur.

Step 3: Recognize the role of internal controls. Internal controls are processes and procedures implemented by organizations to help prevent and detect fraud, ensuring the integrity of financial reporting.

Step 4: Analyze the statement 'Fraud can only occur in large organizations with complex systems.' This statement is incorrect because fraud can occur in organizations of any size, including small businesses, due to vulnerabilities in their systems or processes.

Step 5: Conclude that the correct answer is the statement that fraud can only occur in large organizations with complex systems, as it is not true based on the principles of fraud and internal controls.