The New Fraud Triangle Model
Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 3(3): 191-195
© Scholarlink Research Institute Journals, 2012 (ISSN: 2141-7024) jetems.scholarlinkresearch.org Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 3(3):191-195 (ISSN:2141-7024)
The New Fraud Triangle Model
1
Rasha Kassem and 2Andrew Higson
1
British University in Egypt
Cairo-Suez Desert Road, El Sherouk City
2
School of Business and Economics, Loughborough University,
Loughborough, LE11 3TU, UK
Corresponding Author: Rasha Kassem
___________________________________________________________________________
Abstract
Fraud in corporations is a topic that receives significant and growing attention from regulators, auditors, and the public. Increasingly external auditors are being asked to play an important role in helping organizations prevent and detect fraud. Detecting fraud is not an easy task and requires thorough knowledge about the nature of fraud, how it can be committed and concealed. This paper aims at broadening external auditors’ knowledge about fraud and why it occurs. It explains Cressey’s fraud theory and shows its significance, presents the other fraud models and relates them to Cressey’s model, and proposes a new fraud triangle model that external auditors could consider when assessing the risk of fraud.
__________________________________________________________________________________________
Keywords: fraud, fraud triangle, cressey’s fraud theory, fraud models, fraud detection
__________________________________________________________________________________________
INTRODUCTION
“Trust violators when they conceive of themselves as
Corporate fraud is a topic that has received having a financial problem which is non-shareable, significant and growing attention from regulators, have knowledge or awareness that this problem can auditors, and the public.
External auditors are be secretly resolved by violation
© Scholarlink Research Institute Journals, 2012 (ISSN: 2141-7024) jetems.scholarlinkresearch.org Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 3(3):191-195 (ISSN:2141-7024)
The New Fraud Triangle Model
1
Rasha Kassem and 2Andrew Higson
1
British University in Egypt
Cairo-Suez Desert Road, El Sherouk City
2
School of Business and Economics, Loughborough University,
Loughborough, LE11 3TU, UK
Corresponding Author: Rasha Kassem
___________________________________________________________________________
Abstract
Fraud in corporations is a topic that receives significant and growing attention from regulators, auditors, and the public. Increasingly external auditors are being asked to play an important role in helping organizations prevent and detect fraud. Detecting fraud is not an easy task and requires thorough knowledge about the nature of fraud, how it can be committed and concealed. This paper aims at broadening external auditors’ knowledge about fraud and why it occurs. It explains Cressey’s fraud theory and shows its significance, presents the other fraud models and relates them to Cressey’s model, and proposes a new fraud triangle model that external auditors could consider when assessing the risk of fraud.
__________________________________________________________________________________________
Keywords: fraud, fraud triangle, cressey’s fraud theory, fraud models, fraud detection
__________________________________________________________________________________________
INTRODUCTION
“Trust violators when they conceive of themselves as
Corporate fraud is a topic that has received having a financial problem which is non-shareable, significant and growing attention from regulators, have knowledge or awareness that this problem can auditors, and the public.
External auditors are be secretly resolved by violation
References: Albrecht, S, Howe, K and Romney, M. (1984). Deterring fraud: the internal auditor’s perspective. Institute of Internal Auditors Research Foundation, pp.1-42 195