Which component is part of the fraud triangle?

The component that is part of the fraud triangle is opportunity. The fraud triangle is a model that explains the factors that lead to fraud and consists of three elements: pressure (or motivation), opportunity, and rationalization.

Opportunity refers to the circumstances that allow an individual to commit fraud. It is the situation that permits fraud to occur, such as lack of internal controls, inadequate oversight, or the ability to manipulate financial records without detection. If there is no opportunity, even a highly motivated individual is less likely to commit fraud because they cannot execute their intentions without the ability to carry them out.

Motivation, on the other hand, encompasses the reasons or pressures that might lead someone to commit fraud, such as financial difficulties or personal problems. While perceived need and fear could be related to the pressures influencing someone, they are not recognized as core components of the fraud triangle.

In summary, understanding opportunity as a key element indicates the importance of strong internal controls and oversight in preventing fraudulent activities.