Which of the following most correctly represents how the fraud triangle elements are interrelated? Group of answer choices The greater the pressure, the more opportunity and the less rationalization is needed for fraud to occur The greater the pressure, the less opportunity and the less rationalization is needed for fraud to occur The greater the opportunity, the more rationalization is needed for fraud to occur The greater the rationalization, the more pressure is needed for fraud to occur.

Question

Charlotte Cooke

Social Studies

16 July, 15:42

Which of the following most correctly represents how the fraud triangle elements are interrelated? Group of answer choices The greater the pressure, the more opportunity and the less rationalization is needed for fraud to occur The greater the pressure, the less opportunity and the less rationalization is needed for fraud to occur The greater the opportunity, the more rationalization is needed for fraud to occur The greater the rationalization, the more pressure is needed for fraud to occur.

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Answers (1)

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Carl Kelley · Answer 1

The greater the pressure, the less opportunity and the less rationalization is needed for fraud to occur

Explanation:

Coined by Sociologist Donald Cressey, the fraud triangle refers to framework used in auditing to explain the motivation that may make an individual decide to to commit fraud. The fraud triangle has three components : (1) opportunity, (2) incentive, and (3) rationalization. The fraud triangle works inversely however such that an increase in pressure/incentive means less opportunity and rationalization for fraud