External and Internal Fraud Are Both Sources of Operational Risk

question 57

True/False

External and internal fraud are both sources of operational risk.

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Definitions:

Contingent Liabilities

Potential obligations that may arise depending on the outcome of a future event.

IFRS

International Financial Reporting Standards, which are accounting rules set by the International Accounting Standards Board (IASB) for the preparation of financial statements globally.

GAAP

Stands for Generally Accepted Accounting Principles, which are a common set of accounting rules and standards used in the United States.

Notes Payable

Written agreements where a borrower promises to pay back a specified sum to the lender at a future date.