US CMA Part 2 · Chapter 9 · Question 13 of 23
Which element of the fraud triangle can management most directly reduce by designing and enforcing strong internal controls?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Opportunity
Explanation
Internal controls such as segregation of duties, authorization requirements, reconciliations and monitoring limit the chances to commit and conceal fraud, so they target opportunity. Pressure and rationalization are personal or cultural factors that controls influence less directly, though a strong ethical culture can affect rationalization.
More Professional ethics MCQs
- Q15Which situation is the clearest example of the PRESSURE (incentive) element of the fraud triangle?
- Q16The phrase "tone at the top" refers to:
- Q17Which feature is most important for an effective whistleblower (ethics) hotline?
- Q18Under the anti-bribery provisions of the US Foreign Corrupt Practices Act, which payment is generally permitted?
- Q19In addition to its anti-bribery rules, the US Foreign Corrupt Practices Act requires SEC-registered companies to:
