The Fraud Triangle Identifies Three Elements That Are Generally Present

question 39

Multiple Choice

The fraud triangle identifies three elements that are generally present in the client's organization when fraud occurs. Which of the following is not one of those elements?

• A)Professional skepticism.
• B)Incentives.
• C)Opportunity.
• D)Rationalization.

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Definitions:

Capital Market

A financial market in which long-term debt or equity-backed securities are bought and sold, crucial for raising capital.

Entrepreneurs

Individuals who initiate, manage, and assume the risks of starting and running new businesses.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured by GDP.

Economic Development

The approach a nation takes to boost the economic, political, and social welfare of its inhabitants.