Multiple Choice
What was the primary catalyst for the downfall of Tyco International?
121
views
6. Internal Controls and Reporting Cash
Fraud and the Fraud Triangle
Multiple Choice
Which of the following is NOT one of the three elements of the fraud triangle?
A
Rationalization
B
Opportunity
C
Pressure
D
Liquidity
Verified step by step guidance1
Understand the concept of the fraud triangle, which is a framework used to explain the factors that lead to fraudulent behavior. The three elements are: Rationalization, Opportunity, and Pressure.
Rationalization refers to the mindset or justification a person uses to convince themselves that committing fraud is acceptable.
Opportunity refers to the circumstances or situations that allow a person to commit fraud without being detected.
Pressure refers to the external or internal forces that motivate a person to commit fraud, such as financial difficulties or unrealistic performance expectations.
Liquidity is not part of the fraud triangle. It is a financial term that refers to the ability of a company or individual to meet short-term obligations, and it is unrelated to the fraud triangle framework.
Related Videos
Related Practice
