The Components of the Fraud Triangle Include Incentive, Opportunity, and Rationalization

question 28

True/False

The components of the fraud triangle include incentive, opportunity, and rationalization.

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Definitions:

Noncompensatory

Refers to plans or benefits that do not provide compensation or remuneration, typically used in contexts related to employee benefit plans that do not compensate for services performed.

Stock Option Plan

A program established by a company that grants employees the right to purchase the company's stock at a predetermined price after a certain period of time.

Common Stock Subscribed

An agreement by investors to purchase common stock from a company, indicating the investors' commitment to buy shares at a future date.

Subscriptions Receivable

Amounts owed by customers for subscription services that have been billed but not yet paid.