The Incentive Element of the Fraud Triangle Includes Reasons Why

question 139

True/False

The incentive element of the fraud triangle includes reasons why top management may commit fraud such as enhancing job security and obtaining bigger paychecks.

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Definitions:

Death

The cessation of all biological functions that sustain a living organism; not relevant in a financial context.

Liquidation Purposes

The process of converting assets into cash or cash equivalents by selling them in the event that a business is closing or reorganizing

Sale of Assets

The process of disposing of business assets, either tangible or intangible, in exchange for cash or other compensation.

Sheriff's Sale

A public auction of property repossessed by the government as a result of the owner's failure to comply with legal obligations, such as unpaid taxes or mortgage.