CMA Final · Cost and Management Audit · Forensic Audit
In forensic accounting, the 'fraud triangle' associated with Donald Cressey consists of which three elements?
The fraud triangle comprises pressure, opportunity and rationalisation. A person under perceived financial pressure who sees a chance to commit fraud without being caught and who can justify the act to themselves is likely to commit it. Capability is only added in the fraud diamond.
- APressure, opportunity and rationalisationCorrect
- BMotive, means and detection
- CCapability, concealment and conversion
- DIntent, act and benefit
Explanation
Cressey's fraud triangle identifies perceived non-shareable pressure, perceived opportunity and rationalisation as the conditions present when fraud occurs. Motive, means and detection is not the triangle. Capability is the added element in the later fraud diamond, which is a different model.
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