Which of the Following Most Correctly Represents How the Fraud

question 36

Multiple Choice

Which of the following most correctly represents how the fraud triangle elements are interrelated?

• A) The greater the pressure, the more opportunity and the less rationalization is needed for fraud to occur
• B) The greater the pressure, the less opportunity and the less rationalization is needed for fraud to occur
• C) The greater the opportunity, the more rationalization is needed for fraud to occur
• D) The greater the rationalization, the more pressure is needed for fraud to occur.

---

Definitions:

Overconfidence

A cognitive bias characterized by an individual's unjustifiable faith in their own intuitive reasoning, judgments, or cognitive abilities.

Financial Wisdom

The knowledge and understanding necessary for making prudent financial decisions, encompassing personal finance, investing, budgeting, and saving strategies.

Representativeness Heuristic

A cognitive shortcut used in decision-making, where the likelihood of an event is judged by how much it resembles existing stereotypes.

Affect Heuristic

The reliance on instinct instead of analysis in making decisions.