Accounting · Auditing and Assurance
Which of the following conditions is least likely to be considered a 'Rationalisation' factor in the fraud triangle for financial statement fraud?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Management has a history of promising financial performance to analysts and investors that is later achieved through questionable accounting practices.
- 2Management's personal financial situations are threatened by the entity's financial performance.✓
- 3Management frequently engages in overly aggressive or unrealistic forecasts and budgeting.
- 4Management expresses a strong preference for debt-financing over equity-financing to meet future capital requirements.
Correct answer
Management's personal financial situations are threatened by the entity's financial performance.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Preparing for Accounting?
Practice full-length Accounting mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Auditing and Assurance MCQs →Want more practice questions on Auditing and Assurance?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Accounting · Auditing and Assurance