Multiple Choice
If you make an illegal sale and did not meet a certain level of care, which element of the fraud triangle does this most directly relate to?
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6. Internal Controls and Reporting Cash
Fraud and the Fraud Triangle
Multiple Choice
Which element of the fraud triangle is most directly addressed by implementing software to detect fraud in consumer phone cards?
A
Pressure
B
Rationalization
C
Collusion
D
Opportunity
Verified step by step guidance1
Understand the fraud triangle, which consists of three elements: Pressure, Rationalization, and Opportunity. These elements explain the factors that lead individuals to commit fraud.
Recognize that 'Opportunity' refers to the ability of an individual to commit fraud due to weaknesses in internal controls or systems.
Consider how implementing software to detect fraud in consumer phone cards strengthens internal controls and reduces the chance for fraudulent activities to occur.
Analyze how the software directly addresses 'Opportunity' by identifying and preventing fraudulent transactions, thereby closing gaps in the system.
Conclude that the element of the fraud triangle most directly addressed by implementing fraud detection software is 'Opportunity,' as it minimizes the ability to exploit weaknesses in the system.
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