Multiple Choice
A person who knowingly makes a false claim to the government may be subject to:
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6. Internal Controls and Reporting Cash
Fraud and the Fraud Triangle
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
The fraud triangle shows three factors that push a person to commit fraud and includes which of the following?
A
Risk, Reward, and Punishment
B
Greed, Collusion, and Concealment
C
Pressure, Opportunity, and Rationalization
D
Intent, Means, and Motive
Verified step by step guidance1
Step 1: Understand the concept of the fraud triangle, which is a framework used in financial accounting and auditing to explain the factors that lead individuals to commit fraud.
Step 2: Learn the three components of the fraud triangle: Pressure, Opportunity, and Rationalization. These are the key elements that drive fraudulent behavior.
Step 3: Pressure refers to the financial or personal stress that motivates someone to commit fraud, such as debt, financial hardship, or unrealistic performance expectations.
Step 4: Opportunity arises when there are weaknesses in internal controls or systems that allow someone to commit fraud without being detected.
Step 5: Rationalization is the mental justification or reasoning that a person uses to convince themselves that committing fraud is acceptable or necessary.
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