The Fraud Triangle Requires the Auditor to Actively Consider and Assess

question 74

True/False

The fraud triangle requires the auditor to actively consider and assess the risk of fraud for clients and their financial statements.

---

Definitions:

Accumulated Depreciation

The total amount of an asset's cost that has been allocated as depreciation expense over its useful life, reducing its book value on the balance sheet.

Asset

Tangible or intangible items of value owned or controlled by a person or company, capable of producing future economic benefits.

Straight-Line Depreciation

Straight-line depreciation is a method of allocating the cost of an asset evenly across its useful life.