In the fraud triangle, fraudulent financial reporting and misappropriation of assets share the same conditions and risk factors.

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The fraud triangle outlines three conditions for fraud: pressure, opportunity, and rationalization. While fraudulent financial reporting and misappropriation of assets both involve these conditions, they do not necessarily share the same specific risk factors or motivations. For example, fraudulent financial reporting might be driven by the desire to meet financial targets, whereas misappropriation of assets might be motivated by personal financial need.

In the Fraud Triangle, Fraudulent Financial Reporting and Misappropriation of Assets