For Each Scenario Below, Indicate Which Element of the Fraud

question 21

Essay

For each scenario below, indicate which element of the fraud triangle is present.
(a) Large amounts of cash are on hand.
(b) Management failed to correct ICFR deficiencies in a timely manner.
(c) The organizational structure is complex and lines or authority are unclear.
(d) Future employee layoffs are expected.
(e) Employee behavior suggests dissatisfaction with the company.
(f) Restrictions on the auditor limit access to evidence.
(g) Management attempts to influence the scope of the audit work.
(h) Industry factors threaten the company's financial stability.
(i) Significant related party transactions are audited by another firm.
(j) The personal financial situation of management is threatened.

Recognize the use and implications of reversing entries.

Understand the steps in preparing financial statements and related components.

Identify and correct errors in the closing process and post-closing trial balance.

Understand the different types of governmental funds and their purposes.

---

Definitions:

Egg Cells

The female reproductive cells, also known as ova or oocytes, which combine with a male sperm cell to form a new organism.

Nature/Nurture Interactions

The concept that genetic factors (nature) and environmental influences (nurture) interact to shape the behavior, intelligence, personality, and other traits of an individual.

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of deoxyribonucleic acid (DNA).

Nucleus

In cells, a membrane-bound organelle that contains the cell's chromosomes and acts as the control center for gene expression and DNA replication.