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 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 the above.

Question

Quizplus · Accepted Answer

The fraud triangle is a tool used to identify the factors that lead to intentional misstatements or omissions of financial information. It includes the presence of opportunity, rationalization, and incentive. The focus is on identifying potential fraud risks in the financial statements.

The Purpose of the Fraud Triangle Is to Identify