Understanding the Fraud Triangle: Why and How Fraud Happens

The video tutorial explores the fraud triangle, a model used to understand why and how fraud occurs. It identifies three conditions that enable fraud: incentive and pressure, attitudes and rationalization, and opportunity. Incentive and pressure can be driven by organizational or personal factors. Attitudes and rationalization involve justifying fraudulent acts, influenced by management's behavior. Opportunity is the condition organizations can control through internal controls to prevent fraud. The tutorial concludes with a preview of the next lesson on fraud prevention and detection.

What role does opportunity play in the fraud triangle, and how can organizations influence it?

Why is it important for senior management to develop strong internal controls to prevent fraud?