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 factors is NOT a component of the fraud triangle?

Pressure

Opportunity

Competence

Rationalization

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Verified step by step guidance

Understand the concept of the fraud triangle, which is a model used to explain the factors that lead to fraudulent behavior in individuals.

The fraud triangle consists of three components: Pressure, Opportunity, and Rationalization. These are the key elements that contribute to the likelihood of fraud occurring.

Pressure refers to the financial or personal stress that motivates an individual to commit fraud, such as debt or financial hardship.

Opportunity is the ability to commit fraud due to weak internal controls or lack of oversight within an organization.

Rationalization is the justification or reasoning an individual uses to convince themselves that committing fraud is acceptable. Competence is not part of the fraud triangle, as it does not directly relate to the motivation or circumstances leading to fraud.