Asked by Cassie Owens on May 18, 2024
Verified
The fraud triangle conditions necessary for financial statement fraud to occur are the existence of a system of internal control,the ability to invade the system,and rationalization to commit the fraud.
Fraud Triangle
A theoretical model that asserts three factors must be present for an individual to commit fraud: motivation, opportunity, and rationalization.
Financial Statement Fraud
The intentional misrepresentation or omission of data in a company's financial reports, done to mislead users of those statements.
- Recognize the principles of corporate governance and the importance of ethical financial reporting.
Verified Answer
CN
charles NorrisMay 18, 2024
Final Answer :
False
Explanation :
The fraud triangle consists of three elements: pressure (or incentive), opportunity, and rationalization, not the existence of a system of internal control.
Learning Objectives
- Recognize the principles of corporate governance and the importance of ethical financial reporting.
Related questions
Corporate Governance Refers to the Procedures Designed to Ensure That ...
The Board of Directors Has the Power to Act on ...
The Goal of Financial Managers Does Not Imply That Illegal ...
Corporate Governance Is Defined as the Way That Governments Regulate ...
Corporate Governance Is the Sole Responsibility of Top Management and ...