In the fraud triangle, which element is associated with an individual's perceived opportunity to commit fraud?

In the context of the fraud triangle, the element that is linked to an individual's perceived opportunity to commit fraud is opportunity. This component refers to the circumstances that allow fraud to occur, enabling an individual to commit fraudulent acts without detection.

Opportunity arises from various factors, such as lack of internal controls, inadequate oversight, or an environment that permits unethical behavior. When individuals perceive that they can engage in fraudulent activities without facing potential repercussions, they are more likely to exploit that opportunity.

The other elements of the fraud triangle, such as pressure, which denotes the motivating factors that drive someone to commit fraud, and rationalization, which involves the justification an individual uses to alleviate their guilt, do not directly address the ability or circumstance that facilitates the act of fraud itself. Therefore, opportunity is the crucial aspect that underscores the capacity to commit fraud within the framework of the fraud triangle.