What is the relationship between the Fraud Triangle and Financial Statement Fraud?

Required:

1. What is the Fraud Triangle? Discuss your understanding of the Fraud Triangle and give examples of financial statement fraud for each of the three elements of the Fraud Triangle:

a. Opportunity: give real or hypothetical examples in financial statement fraud.

b. Pressure: give real or hypothetical examples in financial statement fraud.

c. Rationalization: give real or hypothetical examples in financial statement fraud.

2. How can the Fraud triangle detect/prevent financial statement fraud? Discuss how each of the three elements of the Fraud Triangle can detect/prevent financial statement fraud:

a. Opportunity: explain how this element can detect/prevent financial statement fraud.

b. Pressure : explain how this element can detect/prevent financial statement fraud.

c. Rationalization: explain how this element can detect/prevent financial statement fraud.