Why are all three factors of the Fraud Triangle important, as it relates to the act of fraud?

The absence of one or more factors suggests that ...

It is important to recognize that all three factors of the fraud triangle must usually exist for fraud to occur. The absence of one or more factors suggests fraud is unlikely.

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Ryann Browning

Business

21 March, 18:31

Why are all three factors of the Fraud Triangle important, as it relates to the act of fraud?

The absence of one or more factors suggests that ...

It is important to recognize that all three factors of the fraud triangle must usually exist for fraud to occur. The absence of one or more factors suggests fraud is unlikely.

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Answers (1)

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Jesse Jordan · Answer 1

There are three important factors for fraud which are motive, opportunity and rationalization.

Explanation:

The three factors are also known as the fraud triangle, presence of all three factors is important to commit fraud absence of any one may result in reduction in chances of fraud but it is not completely eliminated. Motive is the need for money or some basic necessity due to which a person is forced to commit fraud. Opportunity is the chance available to commit a fraud. Rationalization is a mindset of a person which justifies his/her acts.