Multiple Choice
Which of the following is a reason companies use standard costs?
19
views
6. Internal Controls and Reporting Cash
Fraud and the Fraud Triangle
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is NOT a component of the fraud triangle?
A
Competence
B
Opportunity
C
Rationalization
D
Pressure
Verified step by step guidance1
Understand the concept of the fraud triangle, which is a model used to explain the factors that lead to fraudulent behavior. The three components are Opportunity, Pressure, and Rationalization.
Opportunity refers to the circumstances that allow fraud to occur, such as weak internal controls or lack of oversight.
Pressure involves the motivation or incentive to commit fraud, such as financial difficulties or personal problems.
Rationalization is the justification or reasoning that a person uses to convince themselves that committing fraud is acceptable.
Competence is not a component of the fraud triangle. It refers to a person's ability or skill level, which is unrelated to the factors that lead to fraudulent behavior as described by the fraud triangle.
4:54mWatch next
Master Fraud and the Fraud Triangle with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Fraud and the Fraud Triangle practice set
Problem sets built by lead tutorsExpert video explanations