A CEO believes that the company should try to keep the stock price high by manipulating the financial statements to protect its shareholders. Which element of the fraud triangle is discussed here?
a. Perceived opportunity
b. Trauma
c. Rationalization
d. Perceived pressure
c
FEEDBACK: a. Incorrect.
b. Incorrect.
c. Correct. Fraud perpetrators must have some way to rationalize their actions as acceptable.
d. Incorrect.
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