What is an essential characteristic of the "Fraud Triangle" model?

The "Fraud Triangle" model is a widely recognized framework designed to explain the factors that lead to fraudulent behavior. The essential characteristic of this model is that it identifies three key elements: pressure, opportunity, and rationalization.

Pressure refers to the motivation behind committing fraud, which could stem from financial difficulties, personal problems, or unrealistic expectations. Opportunity highlights the circumstances that enable the fraud to occur, such as weak internal controls or lack of oversight. Rationalization is the mental process by which individuals justify their fraudulent actions to themselves, allowing them to reconcile the act with their own values.

These three elements collectively provide a comprehensive understanding of how and why individuals may engage in fraudulent behavior, making option B the correct answer. The model emphasizes that for fraud to occur, all three components must be present, which offers valuable insight into preventing fraud by addressing these areas.