According to the fraud triangle,

Question

exists when there is a loophole in the internal control environment.

Answer 1

According to the fraud triangle, "opportunity" exists when there is a loophole in the internal control environment. The fraud triangle is a model that explains the factors that lead to fraudulent behavior, consisting of three components: motivation (or pressure), opportunity, and rationalization. Opportunity refers to the ability of an individual to commit fraud, which often arises from weak internal controls or a lack of oversight.