The fraud triangle shows three factors that push a person to commit fraud: opportunity, collusion, and rationalization. A. True
B. False
The fraud triangle shows three factors that push a person to commit fraud: opportunity, collusion, and rationalization.
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B. False
The fraud triangle actually consists of three factors: opportunity, pressure (or incentive), and rationalization. Opportunity refers to the ability to commit fraud; pressure represents the motivation behind the fraud (such as financial difficulties); and rationalization is the process by which the fraudster justifies their actions. Collusion is not one of the primary components of the fraud triangle.