The Fraud theories: Triangle, Diamond, Pentagon
by Parvati T. Soneji
International Journal of Accounting, Auditing and Performance Evaluation (IJAAPE), Vol. 18, No. 1, 2022

Abstract: Early indications of fraud play an important role in detection and prevention. Murphy and Dacin (2011) state frauds mostly occur in three ways: error - lacking awareness, intuition supporting fraud - avoiding negative emotions or effects, and, awareness of fraud coupled with cost-benefit analysis. Hutchison (2013) comparing management fraud to human behaviour says fraud is intentional, multidimensional, and complex - the fallout of several interactive factors, analysis fraud through different abstracts - organisational systems, conflicts of interest, rational choice, social constructiveness, psychodynamic and developmental outlook. The proposed unrealistic goals rewarding attractive compensations purport indulgence in fraud. The desire for achievements, fear of losing the job, challenges meeting financial targets for bonuses, unhealthy competition and criminal collaborations are causes of financial fraud. Management fraud results from decision-making, influenced by personality traits, beliefs, attitudes, social customs, institutional rules and regulations, ethical values, and organisational culture. The paper aims to understand fraud and the theories related to fraud.

Online publication date: Wed, 08-Jun-2022

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Accounting, Auditing and Performance Evaluation (IJAAPE):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com