The Fraud Triangle Consists of Three Components (Pressure,opportunity,and Rationalization)

question 25

Multiple Choice

The fraud triangle consists of three components (pressure,opportunity,and rationalization) .Which of the three components are present in most every fraud?

• A)All three factors are usually present when fraud occurs.
• B)Pressure and opportunity
• C)Opportunity and rationalization
• D)Rationalization and pressure

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Definitions:

Shoplifting

A criminal act of stealing goods from a retail establishment without paying for them.

Sarbanes-Oxley Act

A federal law enacted in 2002 to protect investors from fraudulent accounting activities by corporations.

Accounting Oversight Board

A regulatory organization that oversees the audits of public companies to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports.

Civil and Criminal Penalties

Legal sanctions that can be imposed for violations of law, with civil penalties typically involving fines or damages and criminal penalties involving imprisonment or probation.