A CEO believes that the company should try to keep the stock price high by manipulating the financial statements to protect its shareholders. Which element of the fraud triangle is discussed here?
A) Perceived opportunity
B) Trauma
C) Rationalization
D) Perceived pressure

Question

Quizplus · Accepted Answer

The CEO's belief about manipulating the financial statements to protect shareholders suggests that they are trying to justify their fraudulent behavior, which is a form of rationalization in the fraud triangle.

A CEO Believes That the Company Should Try to Keep