Multiple Choice
Which of the following represents an inherent risk for a financial institution according to the fraud triangle?
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6. Internal Controls and Reporting Cash
Fraud and the Fraud Triangle
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Which of the following is NOT one of the components of the fraud triangle?
A
Opportunity
B
Collaboration
C
Rationalization
D
Pressure
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. The three components are Opportunity, Rationalization, and Pressure.
Opportunity refers to the circumstances that allow fraud to occur, such as weak internal controls or lack of oversight.
Rationalization is the mindset or justification that the fraudster uses to convince themselves that their actions are acceptable.
Pressure refers to the external or internal forces that motivate someone to commit fraud, such as financial difficulties or unrealistic performance expectations.
Review the options provided in the question. Collaboration is not one of the components of the fraud triangle, as it does not align with the established model.
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