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Multiple Choice
Which of the following is NOT one of the three elements of the fraud triangle commonly discussed in relation to ethics in business?
A
Opportunity
B
Competence
C
Pressure
D
Rationalization
Verified step by step guidance
1
Understand the concept of the fraud triangle, which is a model used to explain the factors that lead to fraudulent behavior in business. The three elements are Opportunity, Pressure, and Rationalization.
Opportunity refers to the circumstances that allow fraud to occur, such as weak internal controls or lack of oversight.
Pressure involves external or internal forces that motivate an individual to commit fraud, such as financial difficulties or unrealistic performance expectations.
Rationalization is the process by which the individual justifies their fraudulent actions, convincing themselves that their behavior is acceptable.
Competence is not part of the fraud triangle. It is unrelated to the three elements (Opportunity, Pressure, Rationalization) and is therefore the correct answer to the question.