Question at position 24 Weak internal controls can result in fraud for which reason:Opportunity.Rationalization.Collusion.Pressure/Incentive.

Question

BlackTom AI · Accepted Answer

The question asks which factor explains why weak internal controls can lead to fraud. 
Option 1: Opportunity. This is the central idea in the fraud triangle: if controls are weak, there is greater opportunity for someone to commit fraud without being detected. The lack of oversight, approvals, or separation of duties creates a path for misappropriation, making option 1 a strong and primary explanation.
Option 2: Rationalization. While an individual’s ability to justify dishonest acts is part of the fraud framework, it is a motivational factor rather than the consequence of weak controls. Weak controls don’t create rationalizations themselves; they provide a chance to act, but the person still must justify the act in their mind.
Option 3: Collusion. Collusion (two or more people conspiring) can enable fraud, especially if controls fail to detect coordinated wrongdoing. However, collusion is more of a method that can exploit existing opportunity rather than the root reason weak controls create opportunity. It typically requires opportunity to be present first, and is not the sole or primary consequence of weak controls.
Option 4: Pressure/Incentive. This refers to motive or financial/material incentives that push someone to commit fraud. Like rationalization, motive is important but is not directly caused by weak controls; controls address detection and prevention, not the presence of motive.
In summary, while rationalization, collusion, and pressure/incentive can contribute to fraud, the most direct and universally applicable explanation tied to weak internal controls is the increased opportunity for fraud to be committed undetected.

Question at position 24 Weak internal controls can result in fraud for which reason:Opportunity.Rationalization.Collusion.Pressure/Incentive.

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