What is one incorrect prerequisite for fraud?

In the context of understanding fraud, it is important to identify the components that typically contribute to fraudulent behavior. Fraud is generally recognized as requiring a combination of three key factors: opportunity, motivation, and rationalization.

Dishonesty is an inherent quality in any fraudulent action, as it reflects the intentional deceitful behavior of the individual. Similarly, motivation refers to the reasons why an individual might engage in fraud, such as financial difficulties or personal gain. Opportunity is the circumstance that allows an individual to commit fraud, often stemming from weaknesses in internal controls or oversight.

While manipulation knowledge might be useful for someone intending to commit fraud, it is not a prerequisite in the same critical way as the other factors. A person can commit fraud without specific knowledge of manipulation if they find themselves in a position with the opportunity and motivation to deceive. Therefore, because manipulation knowledge is not essential for the act of committing fraud itself, it can be considered an incorrect prerequisite in this context.