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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 was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
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® 2024 Level I Curriculum, Volume 3, Module 10.