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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.

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