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 is considered an indirect cost of workplace fraud, according to the fraud triangle framework?

Legal fees paid to prosecute the fraudster

Loss of employee morale

Direct financial loss from stolen assets

Replacement cost of stolen inventory

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Verified step by step guidance

Understand the fraud triangle framework, which consists of three elements: opportunity, pressure, and rationalization. These elements help explain why individuals commit fraud.

Differentiate between direct and indirect costs of workplace fraud. Direct costs are tangible and measurable, such as stolen assets or legal fees. Indirect costs are intangible and harder to quantify, such as loss of employee morale or damage to reputation.

Analyze the options provided in the question. Legal fees, direct financial loss, and replacement costs are all direct costs because they involve measurable financial expenditures.

Recognize that loss of employee morale is an indirect cost because it affects the workplace environment and employee productivity, which are not directly measurable in monetary terms.

Conclude that the correct answer is 'Loss of employee morale,' as it aligns with the definition of an indirect cost in the context of workplace fraud.