Which of the following is NOT a core element of the fraud triangle?

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Multiple Choice

Which of the following is NOT a core element of the fraud triangle?

Explanation:
Fraud occurs when three conditions come together: pressure or incentive to commit the fraud, an opportunity created by weak controls, and rationalization that justifies the dishonest act. Unusual journal entries are not one of these fundamental conditions; they’re typically a red flag or concealment method that may indicate fraud is happening, but they don’t define the three required elements themselves. The other items represent the actual conditions that enable fraud: motivation, opportunity, and mindset.

Fraud occurs when three conditions come together: pressure or incentive to commit the fraud, an opportunity created by weak controls, and rationalization that justifies the dishonest act. Unusual journal entries are not one of these fundamental conditions; they’re typically a red flag or concealment method that may indicate fraud is happening, but they don’t define the three required elements themselves. The other items represent the actual conditions that enable fraud: motivation, opportunity, and mindset.

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