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

Question

Quizplus · Accepted Answer

The fraud triangle is specifically designed to identify the causes of and reasons for fraud, which may lead to intentional misstatements or omissions in financial statements. It is not related to the causes of a qualified audit opinion or lack of independence in performing an audit.

The Purpose of the Fraud Triangle Is to Identify