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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following would be considered unethical in a business setting according to the principles of the fraud triangle?

Reporting suspected fraud to management

Providing accurate information to auditors

Implementing internal controls to prevent theft

Falsifying financial records to meet earnings targets

Previous problemNext problem

Verified step by step guidance

Understand the principles of the fraud triangle, which include three components: pressure (motivation to commit fraud), opportunity (a situation that allows fraud to occur), and rationalization (justification for the fraudulent behavior).

Analyze the options provided in the question to determine which action aligns with unethical behavior as described by the fraud triangle.

Option 1: 'Reporting suspected fraud to management' is ethical and aligns with proper business conduct, as it helps address potential fraud.

Option 2: 'Providing accurate information to auditors' is also ethical, as it ensures transparency and compliance with accounting standards.

Option 4: 'Falsifying financial records to meet earnings targets' is unethical because it involves intentional misrepresentation of financial data, which directly violates ethical principles and aligns with the fraud triangle's concept of rationalization and opportunity.