Fraud Investigators Identify the Fraud Triangle of Three Things That

question 81

Multiple Choice

Fraud investigators identify the fraud triangle of three things that have to exist for accounting fraud to occur. Which of the following is not one of the three elements of the fraud triangle?

• A) The incentive to commit fraud.
• B) The opportunity to commit fraud.
• C) The character to commit fraud.
• D) The lack of a business Code of Ethics.

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Definitions:

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specific period.

Consignment

A business arrangement in which goods are left in the possession of another party to sell, with payment to the consignor occurring after sale.

Consignor

The Consignor is the person or entity who owns goods that are sent to another party, known as the consignee, to sell on their behalf.