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:

Professional Race-Car Driver

An individual who competes in auto racing events professionally and as a career, often under contract with racing teams or sponsors.

Actual Authority

The explicit power given to an agent or representative by a principal, allowing them to make decisions and act on the principal's behalf.

Apparent Authority

Apparent authority refers to a situation where a person appears to have the authority to act on behalf of another (such as an employer) even if no actual authority has been granted, leading others to reasonably believe in that authority.

Mutual Agreement

An accord reached by two or more parties who have made concessions to each other to resolve a conflict or reach a decision.