Scelta multipla
According to the fraud triangle, which of the following elements is most likely increased when a small business has suffered from a cyber-attack?
184
views
6. Internal Controls and Reporting Cash
Fraud and the Fraud Triangle
Scelta multipla
Which of the following can make a product line appear less profitable than it actually is, according to concepts related to fraud and the fraud triangle?
A
Overstating expenses allocated to the product line
B
Understating sales revenue for the product line
C
Recording fictitious sales for the product line
D
Omitting direct costs from the product line's financial statements
Guida verificata passo dopo passo1
Step 1: Understand the fraud triangle, which consists of three elements: opportunity, pressure, and rationalization. These elements help explain why individuals commit fraud.
Step 2: Analyze the impact of overstating expenses allocated to the product line. This action increases the reported costs, reducing the apparent profitability of the product line.
Step 3: Examine the effect of understating sales revenue for the product line. This action decreases the reported income, making the product line appear less profitable than it actually is.
Step 4: Consider the implications of recording fictitious sales for the product line. While this inflates revenue, it does not make the product line appear less profitable; instead, it falsely enhances profitability.
Step 5: Evaluate the omission of direct costs from the product line's financial statements. This action reduces reported expenses, which would make the product line appear more profitable, not less profitable.
Video correlati
Pratica correlata
