Which of the following is not an element of the Fraud Triangle?
a. a person’s attitude
b. a person’s willingness to violate the Due Care principle
c. the presence of pressures to achieve specified performance levels
d. the perceived opportunity for financial gain
Answer: b. a person’s willingness to violate the Due Care principle
The Fraud Triangle is a marketing concept referred to in the realm of forensic accounting as well as auditing and has been considered a tool that identifies the three conditions that are always present in a fraudulent scheme. The components of the Fraud Triangle include – Risk (perceived chances of being caught), Justification ( beliefs that are held by the fraudster concerning the act that he or she is undertaking), and Greed (reasons that compel the fraudster to go ahead and do the fraud). Therefore, the Due Care principle is in no way a part of the Fraud Triangle and is simply a legal term which pertains to the degree of responsibility that is expected in some professional interactions or occurrences.