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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

An employee who has unpaid bills might exhibit which element of the fraud triangle?

Pressure (Incentive)

Collusion

Rationalization

Opportunity

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Understand the fraud triangle, which consists of three elements: Pressure (Incentive), Opportunity, and Rationalization. These elements explain why individuals commit fraud.

Pressure (Incentive) refers to a personal or financial need that motivates someone to commit fraud. Examples include unpaid bills, debt, or financial hardship.

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

Rationalization is the mental justification an individual uses to convince themselves that committing fraud is acceptable or necessary.

Analyze the scenario: An employee with unpaid bills is likely experiencing financial pressure, which aligns with the 'Pressure (Incentive)' element of the fraud triangle.