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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 |
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Craig Baugh
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.