Multiple Choice
Which of the following is NOT one of the elements typically present in the fraud triangle when fraud occurs?
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Fraud and the Fraud Triangle
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Which of the following is NOT a component of the fraud triangle?
A
Pressure
B
Opportunity
C
Rationalization
D
Collusion
Verified step by step guidance1
Understand the concept of the fraud triangle, which is a model used to explain the factors that lead to fraudulent behavior in individuals.
The fraud triangle consists of three components: Pressure (the motivation or incentive to commit fraud), Opportunity (the ability to commit fraud without being caught), and Rationalization (the justification or reasoning to make the fraudulent act acceptable in the perpetrator's mind).
Review the options provided in the question: Pressure, Opportunity, Rationalization, and Collusion.
Recognize that Collusion is not part of the fraud triangle. Collusion refers to the act of two or more individuals working together to commit fraud, which is a separate concept from the fraud triangle.
Conclude that the correct answer is Collusion, as it is not one of the three components of the fraud triangle.
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