The document discusses the fraud triangle, which consists of three conditions that must be present for fraud to occur: 1) incentive or pressure, 2) opportunity to commit fraud, and 3) rationalization of fraudulent actions. It defines each condition and notes they must all be present for fraud to happen according to the fraud triangle framework. The document was sourced from the American Institute of Certified Public Accountants from 2008.

1. Fraud Triangle
Dr. O

2. Fraud Triangle Conditions
Incentive
Opportunity Rationalization

3. Fraud Triangle Conditions
 Incentive must be present. In other
words, management or employees have an
incentive or are under pressure or have financial
problems to commit fraud.
 Opportunity to violate trust must also be present.
 Rationalization must also be present. This means
perpetrators rationalize through
attitude, character, or set of ethical values that they
can commit the fraudulent act.
Source
American Institute of Certified Public Accountants. (2008).
Consideration of fraud in a financial statement audit. Retrieved
from http://www.aicpa.org/download/members/div/auditstd/AU-
00316.PDF

4. Fraud Triangle and Internal
Control
Where do you think internal controls fall
under the three conditions? Provide
rationale. I look forward to all your
responses.