What are the three elements of the Fraud Triangle?

What are the three elements of the Fraud Triangle?

• A. Pressure, Opportunity, and Compliance.
• B. Pressure, Opportunity, and Rationalization.
• C. Motivation, Opportunity, and Integrity.
• D. Temptation, Opportunity, and Control.

Answer: (B)

The Fraud Triangle centers on three conditions that together open the door to fraud: Pressure, Opportunity, and Rationalization. Pressure is the motive or financial/personal strain pushing someone to cheat. Opportunity comes from weak controls or access that allows the fraud to be carried out without immediate detection. Rationalization is the mental justification the person uses to reconcile the dishonest act with their self-image, such as feeling entitled or believing they’ll pay it back later.

The option that lists these three elements exactly matches the standard framework, so it’s the best choice. The others miss the mark by inserting terms that aren’t part of the triangle: Compliance is about following rules, not a motive or enabler; Integrity isn’t the justification component; Control refers to prevention, not a core element of the triangle; and while Motivation can describe pressure, the canonical terms used are Pressure, Opportunity, and Rationalization.