Explanation Fraud : Fraud is a deliberate and deceptive action of an employee to obtain unlawful gain from the employer. The following are three factors of fraud triangle, which collectively contribute for employee fraud: Incentive: This factor emphasizes on the constant compulsion an employee is under, to satisfy luxuries, and to overcome his downtrodden financial status, and to mislead investors by misrepresenting financial statements. Opportunity: This factor explains the chance an employee takes advantage of, to commit fraud successfully, when the workplace fails to identify and detect the fraud. Rationalization: This factor focusses on the justification provided by an employee and find reasons to support the unethical behavior. The reasons fraudsters could explain to endorse the fraud, would be being underpaid, or they deserve that robbed money...

6th Edition

ISBN: 9781260536331

Author: PHILLIPS

Publisher: MCGRAW-HILL CUSTOM PUBLISHING

See similar textbooks

Concept explainers

Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.

Question

Chapter 5, Problem 1ME

To determine

To match: The given circumstances with elements of fraud triangle

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 5, Problem 10MC

Chapter 5, Problem 2ME

Chapter 5 Solutions

FINANCIAL ACCOUNTING (LL W/CONNECT)

Ch. 5 - Prob. 1Q Ch. 5 - Prob. 2Q Ch. 5 - Prob. 3Q Ch. 5 - Prob. 4Q Ch. 5 - Prob. 5Q Ch. 5 - What aspect(s) of the Sarbanes-Oxley Act might...Ch. 5 - Prob. 7Q Ch. 5 - What are the five components of an internal...Ch. 5 - Prob. 9Q Ch. 5 - Why is it a good idea to assign each task to only...

Ch. 5 - Prob. 11Q Ch. 5 - Prob. 12Q Ch. 5 - Prob. 13Q Ch. 5 - Prob. 14Q Ch. 5 - Prob. 15Q Ch. 5 - Prob. 16Q Ch. 5 - What is the primary internal control goal for cash...Ch. 5 - Prob. 18Q Ch. 5 - Prob. 19Q Ch. 5 - Prob. 20Q Ch. 5 - Prob. 21Q Ch. 5 - Prob. 22Q Ch. 5 - Prob. 23Q Ch. 5 - Prob. 24Q Ch. 5 - Prob. 1MC Ch. 5 - Prob. 2MC Ch. 5 - Prob. 3MC Ch. 5 - Prob. 4MC Ch. 5 - Which of the following internal control principles...Ch. 5 - Prob. 6MC Ch. 5 - Prob. 7MC Ch. 5 - Prob. 8MC Ch. 5 - Prob. 9MC Ch. 5 - Prob. 10MC Ch. 5 - Prob. 1ME Ch. 5 - Prob. 2ME Ch. 5 - Prob. 3ME Ch. 5 - Prob. 4ME Ch. 5 - Prob. 5ME Ch. 5 - Prob. 6ME Ch. 5 - Prob. 7ME Ch. 5 - Prob. 8ME Ch. 5 - Prob. 9ME Ch. 5 - Prob. 10ME Ch. 5 - Prob. 11ME Ch. 5 - Prob. 12ME Ch. 5 - Prob. 13ME Ch. 5 - Prob. 14ME Ch. 5 - Prob. 15ME Ch. 5 - Prob. 16ME Ch. 5 - Identifying Internal Control Principle and...Ch. 5 - Prob. 2E Ch. 5 - Prob. 3E Ch. 5 - Prob. 4E Ch. 5 - Prob. 5E Ch. 5 - Prob. 6E Ch. 5 - Reporting Cash, Cash Equivalents, and Restricted...Ch. 5 - Prob. 8E Ch. 5 - Prob. 9E Ch. 5 - Prob. 10E Ch. 5 - Prob. 1CP Ch. 5 - Prob. 2CP Ch. 5 - Prob. 3CP Ch. 5 - Prob. 4CP Ch. 5 - Prob. 1PA Ch. 5 - Prob. 2PA Ch. 5 - Prob. 3PA Ch. 5 - Prob. 4PA Ch. 5 - Prob. 1PB Ch. 5 - Prob. 2PB Ch. 5 - Prob. 3PB Ch. 5 - Prob. 4PB Ch. 5 - Recording Transactions and Adjustments,...Ch. 5 - Finding Financial Information Refer to the...Ch. 5 - Comparing Financial Information Refer to the...Ch. 5 - Ethical Decision Making: A Real-Life Example When...Ch. 5 - Ethical Decision Making: A Mini-Case You are an...Ch. 5 - Accounting for Cash Receipts, Purchases, and Cash...

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following would a fraudster perceive as a pressure? A. lack of management oversight B. everyone does it C. living beyond ones means D. lack of an internal audit function
Indicate whether each of the following statements is true or false. Bribery in the world of business typically happens when an organization or representative of an organization gives financial benefits to an official to gain favor or manipulate a business decision. The Foreign Corrupt Practices Act was implemented in the aftermath of disclosures that businesses were violating the IMA Code of Ethics. Managers are required to follow specific rules issued by the iMA for internal financial reporting. Ethics is more than obeying laws. The Sarbanes-Oxley Act addressed public company accounting reform.

Recommended textbooks for you

Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub
Contemporary Auditing
Accounting
ISBN:9781337650380
Author:KNAPP
Publisher:Cengage
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,