Final answer:
D) Collusion is not one of the three conditions that are generally present when fraud occurs. Incentive or pressure, opportunity, and rationalization or attitude are the three conditions that are commonly found in fraudulent situations.
Step-by-step explanation:
The correct answer is D) Collusion. When fraud occurs, there are generally three conditions that are present: incentive or pressure, opportunity, and rationalization or attitude. Collusion refers to two or more individuals working together to commit fraud, so it is not one of the conditions that are generally present. For example, if two employees collude to manipulate financial statements, it is considered fraud.