Final answer:
The condition that is not part of the fraud triangle is 'c. Conversion'. The fraud triangle consists of Rationalization, Incentive (or pressure), and Opportunity, which explain the factors leading to fraudulent behaviour.
Step-by-step explanation:
The answer to the question, “Which of the following is not a condition in the fraud triangle?” is c. Conversion. The fraud triangle is a model designed to explain the reasoning behind an individual’s decision to commit fraud. It consists of three components which are a. Rationalization, b. Incentive (or pressure), and d. Opportunity. Therefore, “Conversion” is not one of the components of the fraud triangle.
Rationalization is a component that describes how an individual justifies their dishonest actions. Incentive or pressure can be financial stress or other motives that push an individual towards committing fraud. Opportunity refers to the situation that must exist for the fraud to be carried out, such as a lack of oversight or weak internal controls within an organization.