The Fraud Triangle Says Three Conditions Are Generally Present in the Client's

question 53

Multiple Choice

The fraud triangle says three conditions are generally present in the client's organization when fraud occurs. Which of the following is not one of those conditions?

• A) Incentives.
• B) Professional Skepticism.
• C) Opportunity.
• D) Ability to rationalize fraud.

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Definitions:

Fraudulent Alteration

Altering a document without permission with the goal of misleading or committing fraud.

Promissory Note

A promissory note is a financial instrument in which one party promises in writing to pay a determinate sum of money to another, either at a fixed or determinable future time.

Entitlement to Payment

The legal right or claim to receive a sum of money from another party under the terms of a contract or agreement.

Promissory Note

A financial instrument that contains a written promise by one party to pay another a definite sum of money either on demand or at a specified future date.