Table of contents

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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

According to the text, what are the main elements of the fraud triangle that explain why individuals commit fraud?

Lack of education, Poor management, High taxes

Pressure, Opportunity, Rationalization

Ambition, Competition, Regulation

Greed, Ignorance, Negligence

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Verified step by step guidance

Understand the concept of the fraud triangle, which is a framework used to explain the factors that lead individuals to commit fraud.

The fraud triangle consists of three main elements: Pressure, Opportunity, and Rationalization. These elements are interconnected and help explain the motivations behind fraudulent behavior.

Pressure refers to the financial or personal stress that drives an individual to commit fraud, such as debt, financial hardship, or unrealistic performance expectations.

Opportunity arises when there are weaknesses in internal controls or systems that allow an individual to exploit them for personal gain without being detected.

Rationalization is the process by which the individual justifies their fraudulent actions, convincing themselves that their behavior is acceptable or necessary under the circumstances.