The purpose of the fraud triangle is to identify:
A) The causes of when the audit opinion should be qualified.
B) The causes of and reasons for fraud when there may be intentional misstatements or omissions of amounts or disclosures in the financial statements.
C) The causes of when there is a lack of independence in performing an audit.
D) The causes of illegal acts.

Question

Quizplus · Accepted Answer

The fraud triangle is a framework used by auditors to identify the causes of and reasons for fraud when intentional misstatements or omissions of amounts or disclosures in financial statements occur. The three key factors of the fraud triangle are opportunity, rationalization, and pressure. By understanding these factors, auditors can better assess the risk of fraud and take appropriate steps to prevent or detect it.

The Purpose of the Fraud Triangle Is to Identify