Which of the following is true regarding the fraud triangle? a. The three elements of the fraud triangle are inter-active. b. A financial pressure to commit fraud is the strongest pressure of the three fraud triangle elements. c. Rationalization for the fraud act is thought of after the fraud has been committed. d. The perceived ability to conceal the fraud act concerns the rationalization side of the fraud triangle.

A.

Explanation:

The three elements of the fraud triangle are inter-active. For fraud to be successful, there would be opportunity, incentive and rationale.

A) The three elements of the fraud triangle are inter-active.

Explanation:

In order for fraud to occur, the three elements of the triangle (opportunity, pressure and rationalization) must come together plus a later element added which refers to the capacity of committing fraud. A more recent version of the fraud triangle includes a fourth element which basically refers to the capacity of committing the fraud.

Whether you include or not the fourth element, all the other 3 must be present in order for fraud to occur:

Opportunity: the fraudster must have the opportunity to commit fraud Pressure: the fraudster must have the necessity o commit fraud Rationalization: the fraudster must convince themselves that what they are doing is not wrong * capacity: the fraudster must have the ability to commit the fraud because control systems become more efficient.