Three Conditions for Fraud Are Referred to as the "Fraud

question 61

Multiple Choice

Three conditions for fraud are referred to as the "fraud triangle." One of the sides of this triangle is incentives or pressures.The other two sides are

• A)opportunities and a desire to meet debt repayment obligations.
• B)opportunities and attitudes or rationalizations.
• C)attitudes or rationalizations and the need to maintain stock prices.
• D)the need to maintain stock prices and the need to meet debt repayment obligations.

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Definitions:

Securities Laws

Legal provisions that govern the trading, offering, and sale of securities to protect investors and ensure market transparency and fairness.

Securities Exchange Commission

A U.S. government agency that oversees and regulates the securities industry and stock market to protect investors.

Accounting Firm

A business that offers a wide range of accounting services to individuals and companies, including audit, tax preparation, and financial consulting.

Auditing Services

Professional services that systematically review and assess the accuracy of financial records and statements of an organization.