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.

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Definitions:

Consumer Research

The study of how people buy, use, and dispose of products and services, including their motivations and decision processes.

Heavily Advertised

Describes products or services that are promoted extensively through various media channels to enhance visibility and consumer awareness.

Existing Preference

The preexisting likes or choices of an individual or group towards certain options or items over others.

High-Fear Messages

Communications intended to elicit fear in order to motivate behavior change, often used in health campaigns.