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Basic Question 6 of 11
Which of the following is least likely a condition present in a "fraud triangle" (Opportunity-Motivation-Rationalization)?
B. Adding independent members to the board of directors
C. Management's belief that a decline in performance is due to temporary economic conditions
A. Constraining debt covenants
B. Adding independent members to the board of directors
C. Management's belief that a decline in performance is due to temporary economic conditions
User Contributed Comments 1
| User | Comment |
|---|---|
| Yrazzaq88 | C = rationalization |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
describe motivations that might cause management to issue financial reports that are not high quality and conditions that are conducive to issuing low-quality, or even fraudulent, financial reports
describe mechanisms that discipline financial reporting quality and the potential limitations of those mechanisms
CFA® 2025 Level I Curriculum, Volume 3, Module 10.