Fraud triangle: Opportunity risk in fraud triangle occurs if opportunity is provided to employees to steal assets belonging to the company or commit frauds because of weak internal control systems of the company. Pressure risks in fraud triangle occurs when pressure is exerted by senior management on their subordinates for manipulating the financial statements for showing good operating and financial results to make them eligible for payment of higher performance bonus and / or manipulate the price of shares on the stock exchange. The management may also over-ride internal control systems for committing frauds. Rationalisation risks in the fraud triangle occur when employees steal assets / commit frauds and then justify it on some rational grounds. To state: The type of risk in the fraud triangle.

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Answer 1

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Chapter 6, Problem 3QS

To determine

Fraud triangle:

Opportunity risk in fraud triangle occurs if opportunity is provided to employees to steal assets belonging to the company or commit frauds because of weak internal control systems of the company. Pressure risks in fraud triangle occurs when pressure is exerted by senior management on their subordinates for manipulating the financial statements for showing good operating and financial results to make them eligible for payment of higher performance bonus and / or manipulate the price of shares on the stock exchange. The management may also over-ride internal control systems for committing frauds. Rationalisation risks in the fraud triangle occur when employees steal assets / commit frauds and then justify it on some rational grounds.

To state: The type of risk in the fraud triangle.

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Answer 2

Question

Chapter 6, Problem 3QS

To determine

Fraud triangle:

Opportunity risk in fraud triangle occurs if opportunity is provided to employees to steal assets belonging to the company or commit frauds because of weak internal control systems of the company. Pressure risks in fraud triangle occurs when pressure is exerted by senior management on their subordinates for manipulating the financial statements for showing good operating and financial results to make them eligible for payment of higher performance bonus and / or manipulate the price of shares on the stock exchange. The management may also over-ride internal control systems for committing frauds. Rationalisation risks in the fraud triangle occur when employees steal assets / commit frauds and then justify it on some rational grounds.

To state: The type of risk in the fraud triangle.

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Answer 3

Question

Chapter 6, Problem 3QS

To determine

Fraud triangle:

Opportunity risk in fraud triangle occurs if opportunity is provided to employees to steal assets belonging to the company or commit frauds because of weak internal control systems of the company. Pressure risks in fraud triangle occurs when pressure is exerted by senior management on their subordinates for manipulating the financial statements for showing good operating and financial results to make them eligible for payment of higher performance bonus and / or manipulate the price of shares on the stock exchange. The management may also over-ride internal control systems for committing frauds. Rationalisation risks in the fraud triangle occur when employees steal assets / commit frauds and then justify it on some rational grounds.

To state: The type of risk in the fraud triangle.

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Answer 4

Question

Chapter 6, Problem 3QS

To determine

Fraud triangle:

Opportunity risk in fraud triangle occurs if opportunity is provided to employees to steal assets belonging to the company or commit frauds because of weak internal control systems of the company. Pressure risks in fraud triangle occurs when pressure is exerted by senior management on their subordinates for manipulating the financial statements for showing good operating and financial results to make them eligible for payment of higher performance bonus and / or manipulate the price of shares on the stock exchange. The management may also over-ride internal control systems for committing frauds. Rationalisation risks in the fraud triangle occur when employees steal assets / commit frauds and then justify it on some rational grounds.

To state: The type of risk in the fraud triangle.

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Answer 5

Chapter 6, Problem 3QS

To determine

Fraud triangle:

Opportunity risk in fraud triangle occurs if opportunity is provided to employees to steal assets belonging to the company or commit frauds because of weak internal control systems of the company. Pressure risks in fraud triangle occurs when pressure is exerted by senior management on their subordinates for manipulating the financial statements for showing good operating and financial results to make them eligible for payment of higher performance bonus and / or manipulate the price of shares on the stock exchange. The management may also over-ride internal control systems for committing frauds. Rationalisation risks in the fraud triangle occur when employees steal assets / commit frauds and then justify it on some rational grounds.

To state: The type of risk in the fraud triangle.

Answer 6

Chapter 6, Problem 3QS

To determine

Fraud triangle:

Opportunity risk in fraud triangle occurs if opportunity is provided to employees to steal assets belonging to the company or commit frauds because of weak internal control systems of the company. Pressure risks in fraud triangle occurs when pressure is exerted by senior management on their subordinates for manipulating the financial statements for showing good operating and financial results to make them eligible for payment of higher performance bonus and / or manipulate the price of shares on the stock exchange. The management may also over-ride internal control systems for committing frauds. Rationalisation risks in the fraud triangle occur when employees steal assets / commit frauds and then justify it on some rational grounds.

To state: The type of risk in the fraud triangle.

Answer 7

Chapter 6, Problem 3QS

To determine

Fraud triangle:

Opportunity risk in fraud triangle occurs if opportunity is provided to employees to steal assets belonging to the company or commit frauds because of weak internal control systems of the company. Pressure risks in fraud triangle occurs when pressure is exerted by senior management on their subordinates for manipulating the financial statements for showing good operating and financial results to make them eligible for payment of higher performance bonus and / or manipulate the price of shares on the stock exchange. The management may also over-ride internal control systems for committing frauds. Rationalisation risks in the fraud triangle occur when employees steal assets / commit frauds and then justify it on some rational grounds.

To state: The type of risk in the fraud triangle.

Answer 8

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Answer 11

Ch. 6 - Prob. 1QS Ch. 6 - Prob. 2QS Ch. 6 - Prob. 3QS Ch. 6 - Prob. 4QS Ch. 6 - Prob. 5QS Ch. 6 - Prob. 6QS Ch. 6 - Prob. 7QS Ch. 6 - Prob. 8QS Ch. 6 - Prob. 9QS Ch. 6 - Prob. 10QS

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Chapter 6 Solutions