
Concept explainers
Fraud Triangle:
It is a model that contain three factors that increases the chances of fraud. Criminologist created the fraud triangle model.
Opportunity: Opportunity is a kind of chance that everyone have. But it is individual decision to taking opportunity in negative sense or in positive sense. Negative opportunity initiates fraudulent practices.
Pressure: Pressure is also based on the thinking of individual. There is positive pressure to complete the work timely and correctly this is positive pressure. And to earn money through short cut involve negative pressure and increase the chances of fraud.
Rationalization: It is the process to make excuses in every situation. This kind of behavior increase the chances of fraud.
To identify: The fraud risk factor exist in the situations.

Want to see the full answer?
Check out a sample textbook solution
Chapter 1 Solutions
Financial and Managerial Accounting
- A company currently has $54 million in sales, $23 million in current assets, $43 million in fixed assets, and $15 million in accounts payable. The fixed assets are currently operated with full capacity and will change proportionally with the sales growth. Sales are projected to be $85 million, current assets are projected to be $32.2 million, and accounts payable are projected to be $21.0 million. What are fixed assets projected to be, given this information?arrow_forwardBrock's Pest Control, Inc. has sales of $945,000, costs of $410,000, depreciation expense of $67,000, interest expense of $45,000, and a tax rate of 23%. The firm just paid out $120,000 in cash dividends and has 100,000 shares of common stock outstanding. a. What is the Earnings Per Share (EPS)? b. What is the Dividends Per Share (DPS)? HELParrow_forwardAzure Apparel has received a special order forarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





