This document proposes a new framework called the "fraud evasion triangle" to explain why fraud is difficult to detect in today's business environment. It identifies three key factors that obstruct fraud detection: 1) Crafty perpetrators who are knowledgeable about the business and take steps to commit fraud without getting caught; 2) Dependent internal auditors who lack independence, proper training, and experience to detect complex fraud schemes; and 3) Limitations in external audits which are not specifically designed to detect fraud and rely on management assertions. The document argues that understanding these obstructing factors is important to developing new approaches to combat fraud. It proposes solutions like limiting senior executive tenure, encouraging whistleblowing, improving corporate culture, and increasing fraud
This document provides biographies of the authors of a book on internal audit and fraud prevention. It introduces John Milner, Martin Ghirardotti, Enrique Pastor, and Miguel del Olmo, who have extensive experience in fields including internal audit, risk evaluation, fraud prevention and detection, and corporate governance. They have worked with companies and organizations in countries like Ireland, Argentina, Mexico, the United States, South Africa, and throughout Latin America. The document establishes the authors' expertise on the topic which will be covered in the book.
This literature review is organized in five sections. Firstly, we begin with general ideas and continue with the origin of the fraudulent. Secondly, we discuss the struggle of the phenomena, insisting on the available mechanisms. Finally, we’ll discuss the link between audit and fraud.
The document discusses the fraud triangle theory developed by Cressey which describes three factors that can lead to fraud - perceived pressure, perceived opportunity, and rationalization. It also discusses the legal elements of fraud, common fraud schemes such as asset misappropriation and corruption, the role of fraud examination in corporate governance, occupational fraud, how an employee's position relates to theft levels, and challenges of collusion. Different types of banks are also identified such as commercial banks, savings banks, offshore banks, and central banks.
The document discusses fraud awareness for managers. It defines fraud and provides examples of regulatory definitions. It outlines factors that can contribute to fraud such as lack of controls and management oversight. The document emphasizes the importance of prevention through controls and establishes tone at the top. It lists behavioral and other red flags that could indicate fraud.
The document discusses red flags that can indicate the presence of fraud. It defines fraud and explains the fraud triangle of opportunity, pressure, and rationalization. It provides examples of general red flags related to employees and management. Specific red flags are given for cash/accounts receivable, payroll, and purchasing/inventory. Common types of fraud like lifestyle fraud and financial statement fraud are also summarized. The document stresses the importance of recognizing and investigating red flags instead of ignoring them.
ACCA-IIA Singapore Seminar 2015 Part 3 Fraud Risk AssessmentBillyCheuk
This document discusses fraud risk assessment and management. It covers key principles of fraud risk management programs including fraud risk assessment, prevention, detection, escalation, investigation and correction. The fraud risk assessment process involves identifying inherent fraud risks, assessing the likelihood and significance of risks, and responding to reasonably likely and significant residual risks. It provides examples of fraud risks across different areas like financial reporting, misappropriation of assets, corruption, and other risks. It also discusses establishing a fraud risk assessment team and outlines the fraud risk assessment framework and process.
Forensic accountants use many tools to fine tune their fraud investigation process, yielding useable results during any fraud investigation. Learn more here.
This document provides biographies of the authors of a book on internal audit and fraud prevention. It introduces John Milner, Martin Ghirardotti, Enrique Pastor, and Miguel del Olmo, who have extensive experience in fields including internal audit, risk evaluation, fraud prevention and detection, and corporate governance. They have worked with companies and organizations in countries like Ireland, Argentina, Mexico, the United States, South Africa, and throughout Latin America. The document establishes the authors' expertise on the topic which will be covered in the book.
This literature review is organized in five sections. Firstly, we begin with general ideas and continue with the origin of the fraudulent. Secondly, we discuss the struggle of the phenomena, insisting on the available mechanisms. Finally, we’ll discuss the link between audit and fraud.
The document discusses the fraud triangle theory developed by Cressey which describes three factors that can lead to fraud - perceived pressure, perceived opportunity, and rationalization. It also discusses the legal elements of fraud, common fraud schemes such as asset misappropriation and corruption, the role of fraud examination in corporate governance, occupational fraud, how an employee's position relates to theft levels, and challenges of collusion. Different types of banks are also identified such as commercial banks, savings banks, offshore banks, and central banks.
The document discusses fraud awareness for managers. It defines fraud and provides examples of regulatory definitions. It outlines factors that can contribute to fraud such as lack of controls and management oversight. The document emphasizes the importance of prevention through controls and establishes tone at the top. It lists behavioral and other red flags that could indicate fraud.
The document discusses red flags that can indicate the presence of fraud. It defines fraud and explains the fraud triangle of opportunity, pressure, and rationalization. It provides examples of general red flags related to employees and management. Specific red flags are given for cash/accounts receivable, payroll, and purchasing/inventory. Common types of fraud like lifestyle fraud and financial statement fraud are also summarized. The document stresses the importance of recognizing and investigating red flags instead of ignoring them.
ACCA-IIA Singapore Seminar 2015 Part 3 Fraud Risk AssessmentBillyCheuk
This document discusses fraud risk assessment and management. It covers key principles of fraud risk management programs including fraud risk assessment, prevention, detection, escalation, investigation and correction. The fraud risk assessment process involves identifying inherent fraud risks, assessing the likelihood and significance of risks, and responding to reasonably likely and significant residual risks. It provides examples of fraud risks across different areas like financial reporting, misappropriation of assets, corruption, and other risks. It also discusses establishing a fraud risk assessment team and outlines the fraud risk assessment framework and process.
Forensic accountants use many tools to fine tune their fraud investigation process, yielding useable results during any fraud investigation. Learn more here.
Fraud Prevention, Mitigation and Management Practices In Nigerian FirmsIOSR Journals
This paper examined fraud prevention, mitigation and management practices. The respondents were 294 persons drawn from business owners, accountants, investors, bankers, and managers in Port Harcourt. The spearman’s rank order correlation coefficient statistical tool of the statistical package for social sciences (SPSS) was used to test the hypotheses. Results indicated that there is a significant relationship between internal control system and reduction in the manipulation of records; and there is a significant relationship between internal auditing and the prevention of assets defalcations.It was concluded that businesses operate in a risky environment where errors and irregularities which may result into fraud can occur. Fraud is an act of deception which is perpetrated by someone in authority for the illegal acquisition of the assets of an organization that he or she is entrusted to take care of. Thus, efficient and effective internal control system with adequate internal auditing should be provided to prevent, mitigate and manage all forms of fraudulent activities in organizations. In the lightof our findings from the study, we recommendedthat the management of firms should have mechanisms for theproper documentations of their assets, and that the management of organizations should provide mechanisms to safeguard all their physical assets.
Fraud Risk Management | Fraud Risk Assessment - EY IndiaErnst & Young
Check out the edition of fraud risk management & fraud risk assessment understanding the client's organizational structure & business environment. For more details, visit http://bit.ly/1RtohKr.
This document provides an overview of understanding forensic investigation processes. It discusses key topics such as concepts of investigations, forensic investigations, forensic audit investigation methodology, forensic audits and the role of internal auditors, forensics in computerized environments, and forensic investigation and audit reporting. The document aims to help readers understand these fundamental concepts in forensic accounting and investigations.
Fraud and Internal Controls: A Forensic Accountant's Perspective - Bill AcuffDecosimoCPAs
The document discusses fraud risks and provides examples of fraud cases. It discusses key steps to manage fraud risks including governance, risk assessment, prevention, detection, deterrence and response. It then summarizes several high-profile fraud cases including Rita Crundwell who embezzled $53 million from her small town as controller over 20 years through lack of segregation of duties and extravagant lifestyle. The document outlines common fraud schemes and techniques based on research from COSO and the ACFE. It discusses Donald Cressy's fraud triangle of perceived opportunity, incentive/pressure, and rationalization driving fraud. Finally, it provides charts on common financial statement fraud techniques and the distribution of fraud by category and median losses.
Discover the 4 most common types of forensic accounting investigation and what you need to know before hiring a forensic accounting investigator for your case.
The document discusses fraud risk and consumer fraud management. It defines fraud and outlines the main categories. It provides data on fraud incidents and losses from regulatory reports. It then details common types of fraud like identity theft, credit card fraud, and phishing. The document outlines challenges in fraud management and provides examples of fraud attempts in Pakistan. It concludes with recommendations for financial institutions to strengthen anti-fraud culture, define clear roles and responsibilities, invest in fraud detection systems, and leverage fraud data and training to enhance consumer fraud management.
Fraud: Understanding Fraud and Our ResponsibilitiesJason Lundell
This document discusses various types of fraud, famous fraudsters, how fraud is detected, and ways to prevent fraud. It provides details on common fraud schemes like asset misappropriation, corruption, and financial statement fraud. The largest fraudsters discussed are Bernie Madoff, whose Ponzi scheme resulted in $65 billion in losses, and Ken Lay of Enron, which led to a $100 billion loss for investors. Fraud is most often detected through tips, internal controls, and audits. Strong internal controls like surprise audits and job rotation were found to significantly reduce median fraud losses.
The document discusses various principles of fraud including:
1) Definitions of fraud, corporate fraud, management fraud, and financial statement fraud.
2) The fraud triangle consisting of pressure/motivation, opportunity, and rationalization as the three elements common to every fraud.
3) Characteristics of typical fraudsters including that they are usually someone trusted and not initially suspected, and profiles of high-level and low-level thieves.
4) Taxonomies used to classify fraud including against customers/investors, criminal/civil, for/against the company, and internal/external fraud.
5) The "fraud tree" categorizing fraud into fraudulent statements, asset
Identity theft is a growing problem globally. The document discusses identity theft and fraud, how it is committed, how to protect oneself, and what to do if one becomes a victim. Identity theft occurs when someone accesses enough personal information, like name, address, birthdate, to commit fraud. Financial institutions assume most liability for spending-related fraud. The document provides tips on protecting personal information and detecting identity theft, such as shredding documents, checking credit reports, and reporting suspicious activity promptly.
This document discusses the increasing problem of insurance fraud and how claims handlers can identify and manage fraudulent claims. It notes that fraud has risen significantly in recent years due to economic conditions creating more opportunities for fraud. The document advocates adopting a strategic, top-down approach to fraud management that involves identifying fraud risks, investigating suspicious claims, and regularly updating fraud indicators based on emerging fraud trends.
The document discusses the fraud triangle, which consists of three conditions that must be present for fraud to occur: 1) incentive or pressure, 2) opportunity to commit fraud, and 3) rationalization of fraudulent actions. It defines each condition and notes they must all be present for fraud to happen according to the fraud triangle framework. The document was sourced from the American Institute of Certified Public Accountants from 2008.
Essentials of a Highly Effective Employee Fraud Awareness ProgramFraudBusters
This document provides an overview of establishing and managing an effective employee fraud hotline. It recommends establishing an accessible hotline channel, publicizing the hotline to employees, providing multiple reporting options, staffing the hotline with independent personnel, training hotline staff, maintaining an anonymous claim log, and making the hotline available to all stakeholders to encourage fraud reporting. The document emphasizes the importance of properly establishing and promoting a hotline to detect fraud and support an ethical organizational culture.
Brennan, Niamh M. and McGrath, Mary [2007] Financial Statement Fraud: Inciden...Prof Niamh M. Brennan
This document summarizes a research paper that studied 14 cases of financial statement fraud from the US and Europe. It found that senior management was usually responsible, and the most common method of fraud was recording false sales to meet external earnings forecasts. Fraud was typically discovered by management, either existing or new management taking over.
1) The document discusses fraud deterrence, which aims to proactively identify and remove factors that enable fraud through improving organizational procedures and culture.
2) It defines fraud deterrence as preventing fraud by analyzing conditions and procedures that could enable fraud in the future and reducing related risks.
3) The document outlines the five components of the COSO internal control model that provide a foundation for fraud deterrence by limiting fraud opportunity factors - control environment, risk assessment, control activities, information and communication, and monitoring.
Most companies have ethics and compliance policies in place and those policies usually include training for employees. That training typically includes material about policies prohibiting discrimination and harassment, bribery and excessive gift-giving. But it usually does not teach employees how to recognize signs of fraud and how to report them.
Employee fraud awareness training is one of the most important ways your company can protect itself from fraud which, according to the Association of Certified Fraud Examiners, costs the average company five per cent of its revenues every year.
This document discusses corporate fraud, including defining it, the fraud triangle of opportunity, pressure, and rationalization, prevention methods, and detection. It notes that fraud is primarily a human/behavioral problem. The fraud triangle explains how fraud occurs when someone faces pressure and rationalizes their actions when an opportunity arises. Management can influence opportunity through controls and influence pressure through employee assistance programs. Prevention methods include creating an ethical culture, implementing controls, oversight, and discipline for violations. Detection typically occurs through internal audits, tips, or investigating red flags and anomalies.
Fundamental controlling tool of fraud prevention and detection designed for company owners and top management. Protect at work and in business those honest against those unfair.
www.forensicline.eu
Fraud Risk Assessment- detection and prevention- Part- 2, Tahir Abbas
The document discusses various techniques for detecting and preventing fraud, including:
1) Establishing prevention techniques like controls, job rotation, and education to avoid fraud risks.
2) Implementing detection methods such as data analysis, forensic auditing, and link analysis to uncover fraud.
3) Asking vital questions within 24 hours of a fraud allegation to properly investigate and prevent future fraud.
This document examines fraud prevention and internal controls in the Nigerian banking system. It uses both primary and secondary data to analyze the effectiveness of internal controls and identify factors that influence fraud. The primary data uses questionnaires from four banks to test how separation of duties, monitoring, and staff qualifications impact internal controls. The secondary data uses bank profit, regulation, technology, and M2 levels to further explore their impact on actual losses, weighted losses, and percentage increases in losses. Regression analysis is used to analyze the relationships between these factors. The results show that internal controls are effective against fraud but not all staff commit to them fully. The secondary data supports and expands on this by showing M2 levels, staff qualifications and technology have significant impacts across
Computer aided audit techniques and fraud detectionAlexander Decker
This research study examined the use of computer aided audit techniques (CAATs) to detect fraud. The study found that 72.8% of respondents agreed that CAATs play a major role in fraud detection. It was also found that CAATs help improve auditor performance and provide transparency in financial reporting. However, costs associated with implementation and skills required present challenges to adoption of CAATs. The study concluded that CAATs can effectively detect fraudulent and misappropriated practices in organizations.
Fraud Prevention, Mitigation and Management Practices In Nigerian FirmsIOSR Journals
This paper examined fraud prevention, mitigation and management practices. The respondents were 294 persons drawn from business owners, accountants, investors, bankers, and managers in Port Harcourt. The spearman’s rank order correlation coefficient statistical tool of the statistical package for social sciences (SPSS) was used to test the hypotheses. Results indicated that there is a significant relationship between internal control system and reduction in the manipulation of records; and there is a significant relationship between internal auditing and the prevention of assets defalcations.It was concluded that businesses operate in a risky environment where errors and irregularities which may result into fraud can occur. Fraud is an act of deception which is perpetrated by someone in authority for the illegal acquisition of the assets of an organization that he or she is entrusted to take care of. Thus, efficient and effective internal control system with adequate internal auditing should be provided to prevent, mitigate and manage all forms of fraudulent activities in organizations. In the lightof our findings from the study, we recommendedthat the management of firms should have mechanisms for theproper documentations of their assets, and that the management of organizations should provide mechanisms to safeguard all their physical assets.
Fraud Risk Management | Fraud Risk Assessment - EY IndiaErnst & Young
Check out the edition of fraud risk management & fraud risk assessment understanding the client's organizational structure & business environment. For more details, visit http://bit.ly/1RtohKr.
This document provides an overview of understanding forensic investigation processes. It discusses key topics such as concepts of investigations, forensic investigations, forensic audit investigation methodology, forensic audits and the role of internal auditors, forensics in computerized environments, and forensic investigation and audit reporting. The document aims to help readers understand these fundamental concepts in forensic accounting and investigations.
Fraud and Internal Controls: A Forensic Accountant's Perspective - Bill AcuffDecosimoCPAs
The document discusses fraud risks and provides examples of fraud cases. It discusses key steps to manage fraud risks including governance, risk assessment, prevention, detection, deterrence and response. It then summarizes several high-profile fraud cases including Rita Crundwell who embezzled $53 million from her small town as controller over 20 years through lack of segregation of duties and extravagant lifestyle. The document outlines common fraud schemes and techniques based on research from COSO and the ACFE. It discusses Donald Cressy's fraud triangle of perceived opportunity, incentive/pressure, and rationalization driving fraud. Finally, it provides charts on common financial statement fraud techniques and the distribution of fraud by category and median losses.
Discover the 4 most common types of forensic accounting investigation and what you need to know before hiring a forensic accounting investigator for your case.
The document discusses fraud risk and consumer fraud management. It defines fraud and outlines the main categories. It provides data on fraud incidents and losses from regulatory reports. It then details common types of fraud like identity theft, credit card fraud, and phishing. The document outlines challenges in fraud management and provides examples of fraud attempts in Pakistan. It concludes with recommendations for financial institutions to strengthen anti-fraud culture, define clear roles and responsibilities, invest in fraud detection systems, and leverage fraud data and training to enhance consumer fraud management.
Fraud: Understanding Fraud and Our ResponsibilitiesJason Lundell
This document discusses various types of fraud, famous fraudsters, how fraud is detected, and ways to prevent fraud. It provides details on common fraud schemes like asset misappropriation, corruption, and financial statement fraud. The largest fraudsters discussed are Bernie Madoff, whose Ponzi scheme resulted in $65 billion in losses, and Ken Lay of Enron, which led to a $100 billion loss for investors. Fraud is most often detected through tips, internal controls, and audits. Strong internal controls like surprise audits and job rotation were found to significantly reduce median fraud losses.
The document discusses various principles of fraud including:
1) Definitions of fraud, corporate fraud, management fraud, and financial statement fraud.
2) The fraud triangle consisting of pressure/motivation, opportunity, and rationalization as the three elements common to every fraud.
3) Characteristics of typical fraudsters including that they are usually someone trusted and not initially suspected, and profiles of high-level and low-level thieves.
4) Taxonomies used to classify fraud including against customers/investors, criminal/civil, for/against the company, and internal/external fraud.
5) The "fraud tree" categorizing fraud into fraudulent statements, asset
Identity theft is a growing problem globally. The document discusses identity theft and fraud, how it is committed, how to protect oneself, and what to do if one becomes a victim. Identity theft occurs when someone accesses enough personal information, like name, address, birthdate, to commit fraud. Financial institutions assume most liability for spending-related fraud. The document provides tips on protecting personal information and detecting identity theft, such as shredding documents, checking credit reports, and reporting suspicious activity promptly.
This document discusses the increasing problem of insurance fraud and how claims handlers can identify and manage fraudulent claims. It notes that fraud has risen significantly in recent years due to economic conditions creating more opportunities for fraud. The document advocates adopting a strategic, top-down approach to fraud management that involves identifying fraud risks, investigating suspicious claims, and regularly updating fraud indicators based on emerging fraud trends.
The document discusses the fraud triangle, which consists of three conditions that must be present for fraud to occur: 1) incentive or pressure, 2) opportunity to commit fraud, and 3) rationalization of fraudulent actions. It defines each condition and notes they must all be present for fraud to happen according to the fraud triangle framework. The document was sourced from the American Institute of Certified Public Accountants from 2008.
Essentials of a Highly Effective Employee Fraud Awareness ProgramFraudBusters
This document provides an overview of establishing and managing an effective employee fraud hotline. It recommends establishing an accessible hotline channel, publicizing the hotline to employees, providing multiple reporting options, staffing the hotline with independent personnel, training hotline staff, maintaining an anonymous claim log, and making the hotline available to all stakeholders to encourage fraud reporting. The document emphasizes the importance of properly establishing and promoting a hotline to detect fraud and support an ethical organizational culture.
Brennan, Niamh M. and McGrath, Mary [2007] Financial Statement Fraud: Inciden...Prof Niamh M. Brennan
This document summarizes a research paper that studied 14 cases of financial statement fraud from the US and Europe. It found that senior management was usually responsible, and the most common method of fraud was recording false sales to meet external earnings forecasts. Fraud was typically discovered by management, either existing or new management taking over.
1) The document discusses fraud deterrence, which aims to proactively identify and remove factors that enable fraud through improving organizational procedures and culture.
2) It defines fraud deterrence as preventing fraud by analyzing conditions and procedures that could enable fraud in the future and reducing related risks.
3) The document outlines the five components of the COSO internal control model that provide a foundation for fraud deterrence by limiting fraud opportunity factors - control environment, risk assessment, control activities, information and communication, and monitoring.
Most companies have ethics and compliance policies in place and those policies usually include training for employees. That training typically includes material about policies prohibiting discrimination and harassment, bribery and excessive gift-giving. But it usually does not teach employees how to recognize signs of fraud and how to report them.
Employee fraud awareness training is one of the most important ways your company can protect itself from fraud which, according to the Association of Certified Fraud Examiners, costs the average company five per cent of its revenues every year.
This document discusses corporate fraud, including defining it, the fraud triangle of opportunity, pressure, and rationalization, prevention methods, and detection. It notes that fraud is primarily a human/behavioral problem. The fraud triangle explains how fraud occurs when someone faces pressure and rationalizes their actions when an opportunity arises. Management can influence opportunity through controls and influence pressure through employee assistance programs. Prevention methods include creating an ethical culture, implementing controls, oversight, and discipline for violations. Detection typically occurs through internal audits, tips, or investigating red flags and anomalies.
Fundamental controlling tool of fraud prevention and detection designed for company owners and top management. Protect at work and in business those honest against those unfair.
www.forensicline.eu
Fraud Risk Assessment- detection and prevention- Part- 2, Tahir Abbas
The document discusses various techniques for detecting and preventing fraud, including:
1) Establishing prevention techniques like controls, job rotation, and education to avoid fraud risks.
2) Implementing detection methods such as data analysis, forensic auditing, and link analysis to uncover fraud.
3) Asking vital questions within 24 hours of a fraud allegation to properly investigate and prevent future fraud.
This document examines fraud prevention and internal controls in the Nigerian banking system. It uses both primary and secondary data to analyze the effectiveness of internal controls and identify factors that influence fraud. The primary data uses questionnaires from four banks to test how separation of duties, monitoring, and staff qualifications impact internal controls. The secondary data uses bank profit, regulation, technology, and M2 levels to further explore their impact on actual losses, weighted losses, and percentage increases in losses. Regression analysis is used to analyze the relationships between these factors. The results show that internal controls are effective against fraud but not all staff commit to them fully. The secondary data supports and expands on this by showing M2 levels, staff qualifications and technology have significant impacts across
Computer aided audit techniques and fraud detectionAlexander Decker
This research study examined the use of computer aided audit techniques (CAATs) to detect fraud. The study found that 72.8% of respondents agreed that CAATs play a major role in fraud detection. It was also found that CAATs help improve auditor performance and provide transparency in financial reporting. However, costs associated with implementation and skills required present challenges to adoption of CAATs. The study concluded that CAATs can effectively detect fraudulent and misappropriated practices in organizations.
This presentation is an overview of Fraud Risk Management in Indian companies and the role of the Board of Directors in the context of the newly enacted Companies Act, 2013.
Fraud and corporate governance changing paradigm in India 2012EY
This report offers a perspective on the bribery landscape across Europe, the Middle East, India and Africa (EMEIA), including enforcement trends, risks for businesses to be aware of and mitigating steps companies may want to consider.
For further information on EY's fraud investigation and dispute services, please visit: http://www.ey.com/IN/en/Services/Assurance/Fraud-Investigation---Dispute-Services
The document summarizes the key findings of PwC's 2014 Global Economic Crime Survey regarding economic crime in Thailand. Some of the main points include:
- 37% of Thai respondents reported experiencing economic crime directly, higher than global averages. Procurement fraud and bribery/corruption were most common.
- Procurement fraud in Thailand often occurs at the bid process stage through unverified vendors and shell companies. Bribery is also endemic in Thailand.
- Cybercrime awareness is lower in Thailand than global/regional averages, but increasing as threats move outside organizations. Insider fraud makes up 89% of economic crime in Thailand, much higher than global norms.
- Middle managers with 3-5 years'
This study examines the role of fraud risk factors in the fraud pentagon theory in detecting fraudulent financial statements. The study analyzed 28 Indonesian banking companies from 2017-2019 using secondary data and the SEM-PLS method. The results found that external pressure, influence monitoring, auditor switching, director changes, and CEO picture frequency simultaneously influence fraudulent financial statement detection. However, individually, external pressure, auditor switching, influence monitoring, and director changes significantly influence detection, while CEO picture frequency does not. The study aims to help companies improve accountability and transparency and help investors conduct more diligent due diligence when evaluating potential investments.
This document analyzes different fraud theories - the fraud triangle, fraud diamond, and fraud pentagon - and their ability to detect corporate fraud in Indonesia. It reviews the literature on each theory and their components (pressure, opportunity, rationalization, capability, arrogance). The study uses secondary data from 310 publicly listed Indonesian companies from 2012-2017 to empirically test if the theories significantly affect corporate fraud. The results of statistical tests show the data supports all the hypotheses, indicating all three fraud theories can be used to investigate corporate fraud based only on publicly available secondary data.
If you would like to have a training session at your business to educate your employees how to identify & prevent occupational fraud please contact me at ann@yeagerboyd.com
This document summarizes a research study that examined the impact of internal audit function and internal auditor competency on detecting fraudulent financial statements at state-owned banks in Indonesia. The study surveyed 220 internal auditors and audit committee members across state-owned banks. The results found that internal audit function and internal auditor competence had a positive impact on detecting financial statement fraud. Internal auditor competence, in particular, was the most influential variable in detecting fraudulent financial reporting based on its high beta value. Competent internal auditors with skills, experience, and education are better able to identify intentional fraud in financial statements.
COLLEGE OF BANKING AND FINANCIAL STUDIESDEPARTMENT OF UNDERGWilheminaRossi174
COLLEGE OF BANKING AND FINANCIAL STUDIES
DEPARTMENT OF UNDERGRADUATE PROGRAMME
B.Sc. in Accounting, Auditing and Finance
Student Name & ST Number
Dunya Hamood Albreiki (ST09019)
Semester
8
September – December 2021Assignment Title
Practical implication in adherence to the Code of Ethics and identification of fraud risk factors.
Module
UG 034 – Ethics and Conduct of Accounting Profession
Assessor:
Ms. Nandini Balaji/ Ms. Mariam Hassen
Internal Verifier
Mr. Mohammed Farzan
Table of content
Contents
Introduction 2
Part A 3
Using Professional skepticism 3
Fraud risk factors 5
Part B 6
Violations to ethical principles, and the nature of threats it poses 6
Recommendations 9
Conclusion 10
Reference List 11
Introduction
The accountancy profession places a high priority on auditors' independence as the core standard of morality. It is imperative that accountants avoid conflicting interests and other problematic business links when providing financial solutions. An accountant's competence to give an unbiased assessment of an organization's financial data may be harmed if they fail to maintain their objectivity and independence. It is crucial for auditors to be objective and independent in their work. Public accounting companies and personal certified public accountants (CPAs) are typically limited services they may provide to their customers. General financial reporting, audits, taxes, and management consultancy services are all included in auditing. They may lose their neutrality and independence if they execute more than one service for the same customer (Ariail, Smith and Smith 2020). When a person audits their own work, they are basically re-checking their own work. An accountant may be able to conceal a company's unfavorable financial facts in this case. We'll look at how the Code of Ethics is used in real life, as well as how fraud risk indicators are identified in the context of the Omancell case.
Part A Comment by Nandini Balaji: Dear the reqiurement for part a has not been met. Youhave suggested risk factors and have tried to connect to the scenario. However you are supposed to identify the risk factors from the scenario, explain why they are risk factors. Recommending to reconsider your answer. There is scope for identification of additional risk factorsUsing Professional skepticism
Professional skepticism is suitable to be applicable by Mr. Omar, the financial controller of Omancell for the year ending December 31, 2021, at different phases of the strategic audit planning, and some such instances are provided below: Comment by Nandini Balaji: Recommending to first explain what is professional skepticism and its importance
While Mr. Omar is examining Omancell's trustworthiness, he should also take into account any issues that may affect the consultant's ability to operate with professional judgment, including ethical risks to impartiality, before accepting the partnership. It is important that Mr. Omar exercise ...
45The Security Survey An OverviewA security survey is a.docxalinainglis
45
The Security Survey: An Overview
A security survey is a critical, on-site examination…to ascertain the present security
status, identify deficiencies or excesses, determine the protection needed, and
make recommendations to improve the overall security of the operation.
—Raymond M. Momboisse, Industrial Security for Strikes, Riots and Disasters,
Charles C. Thomas Publishers, 1977
The goal of risk management—to manage risk effectively at the least possible cost—cannot
be achieved without eliminating or reducing, through a total management commitment,
the incidents that lead to losses.1 Before any risk can be eliminated or reduced, it must first
be identified. One proven method of accomplishing this task is the security survey. Charles
A. Sennewald, author and security consultant, has defined the security survey as follows:
“The primary vehicle used in a security assessment is the survey. The survey is the process
whereby one gathers data that reflects the who, what, how, where, when, and why of the
client’s existing operation. The survey is the fact-finding process.”2
Why Are Security Surveys Needed?
There are reports published by the Association of Certified Fraud Examiners (ACFE)
estimating that the cost of fraud and financial abuse to American business was in excess
of $994 billion per year in 2008 and rising. This figure is believed by most authorities to be
very conservative. The sad fact is that no one organization is capable of collecting all the
data available concerning fraud. As an example, in America we have an alarming trend
in Medicare fraud, costing taxpayers untold millions of dollars. The biggest problem, and
the one seen most often by fraud investigators, is that most corporate managers do not
know if they have theft problems. Worse, many do not even want to know that they have
a problem with employee theft! Some managers seem to prefer to keep things as they are
and to regard any suggestion of the need for increased security as a direct or indirect crit-
icism of their ability to manage their operations. We hope that this attitude has changed
for the better as a result of the downturn in the global economy. In times of economic
difficulties anything that affects the bottom line (profits) is not tolerated. Nevertheless,
where fraud exists, most business fraud surveys calculate losses at about 6 percent of
annual revenue. Some surveys we have seen reported have concluded that losses attrib-
utable to employee theft (internal theft) equal or exceeded profits! This is especially
7
1 The field of risk management encompasses much more than security and safety. These two subjects, along
with insurance, however, are the cornerstones of most effective risk management programs.
2 Sennewald, C. A., 2004. CPP, Security Consulting, third ed. Butterworth-Heinemann, Elsevier, Boston, MA.
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L
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O
B
1
6
6
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S
46 RISK ANALYSIS AND THE SECURITY SURVEY
true for chain-store operations, .
Fraud Investigation, Prevention and DetectionTareq Obaid
The document summarizes key findings from a study of 2,690 occupational fraud cases reported between 2016-2017. Some key findings include:
- Asset misappropriation was the most common fraud (89% of cases), but financial statement fraud caused the highest median loss ($800,000).
- Over 23% of cases involved more than one fraud type. Corruption often occurred with asset misappropriation.
- Frauds lasted an average of 16 months but duration varied by type, from 6 months for non-cash schemes to 5 years for payroll schemes.
- Tips were the leading detection method (40% of cases), and active detection methods like internal audits found frauds with lower losses.
Overcoming compliance fatigue - Reinforcing the commitment to ethical growth ...EY
This presentation is based on EY FIDS' 13th Global Fraud Survey. It highlights the state of fraud, bribery and corruption, comprising global as well as India findings.
For further information, please visit: http://www.ey.com/FIDS
The ever increasing regulations and expansion of organisations across the globe into new markets exposed the organisations to greater regulatory and compliance risks. To Know More : https://www2.deloitte.com/in/en/pages/audit/articles/internal-audit.html
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jurnal fraud not detected.pdf
1. 35
Fraud Evasion Triangle: Why Can Fraud Not Be Detected?
Emre Ergina İlkay Ejder Erturanb
a Corresponding author, Kocaeli University, Turkey, emre.ergin@kocaeli.edu.tr
b Düzce University, Turkey, ilkayerturan@duzce.edu.tr
Keywords
Fraud Evasion Triangle,
Fraud Triangle, Audit,
Accounting.
Jel Classification
M42, M12.
Received
21.08.2019
Revised
09.09.2019
Accepted
13.09.2019
Abstract
Purpose: The purpose of this article is to construct a
framework, called fraud evasion triangle, which explains
why today’s business environment cannot detect fraud.
After identifying the factors that prevent fraud from being
detected, radical solutions to fight fraud are proposed for
each of these three factors.
Design/methodology/approach: A qualitative research
approach is selected conducting interviews with certified
public accountants, independent auditors and finance
officers in different sectors. They ara asked open-ended
questions to explain the types of frauds they have
witnessed, the reasons for frauds happened, the reasons
why frauds could not be prevented and possible measures
to prevent frauds.
Findings: The findings show that today’s business tools to
combat with fraud are not sufficient. Most of the literature
and research papers show the reasons of fraud, and don’t
explain why fraudulent activities are not prevented. In
fact, knowing the motives of fraudsters are not essentials
for detecting the fraud. The paper put the obstructive
factors of fraud detection into three categories, namely
crafty perpetrators, dependent internal auditors, and
external audit design.
Practical implications: The increasing tendency of fraud
is not reversed although regulators put standards, and
firms allocate more funds to combat with fraud. The
article proposes solutions for each of the three factors of
the fraud evasion triangle. Most of the proposed solutions
can be easily implemented while some solutions require
global consensus and legislation change.
Originality/value: This paper explains why it is difficult
to detect frauds in a new explanatory framework, and
offers radical solutions to fight fraud.
DOI: 10.32602/jafas.2019.36
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36
1. Introduction
There is a controversial issue whether whose responsibility it is to detect fraudulent activities in the
firms. For instance, the Chairman of the Public Company Accounting Oversight Board in USA cast the
burden of detecting the fraud on external auditors (CFO, 2004). External auditors put in their
auditor’s report that the management of the company is responsible for the preparation of the
financial statements that are free from material misstatements, whether due to fraud or error.
Auditor’s responsibility is to obtain a reasonable assurance and it is not a guarantee to detect fraud
or error even if they are material. Shareholders rely not only on the management they give power
but also to external auditors and oversight boards. However, Global Economic Crime and Fraud
Survey (PwC, 2018, p. 2) shows that fraud and economic crime are on the rise across all geographic
territories despite increased spending on struggling fraud. Dyck et al. (2010) explain that the
traditional corporate governance actors such as SEC and auditors are not reliable for fraud detection.
Cressey (1973, p. 30) formulated the fraud triangle and identified three basic motives which lead to
fraudulent behavior: incentive (or pressure to perform), opportunity, and rationalization. The survey
(PwC, 2018, p. 24) points out the extent of each factor accounts for such a behavior: 59% of fraudulent
activities derive from opportunity, 21% from incentive, and 11% from rationalization.
Corporate loss per fraud case is calculated as USD 130.000, while 22% of the cases caused losses over
USD 1 million (ACFE, 2018). Corporate accounting scandals negatively influence economy,
shareholders, suppliers, employee morale, and the society. The scandals of firms whose stocks are
publicly traded in the markets are heard by the public thanks to media. However, the fiascos of the
small and medium sized firms which constitute a greater part of the economy are rarely known to
general public. Practitioners and academicians try to develop indicators and prediction models to
isolate fraudulent activities. However, the fraud is driven by human actions, and the fight should use
human counter-actions rather than technological deterministic tools. Salem (2012) reveals the
detected frauds have declined after the use of more advanced technological methods. This paper
explains the reasons of the difficulties for detecting fraud and forms an explanatory framework
demonstrating the factors that stand against the combat with fraud.
This paper seeks to answer the question of why it is difficult to detect corporate fraud by constructing
an explanatory framework. Fraud triangle supporters and most of the academicians look for factors
that motivate fraudsters. However, this approach doesn’t answer what prevents the fraud to be
detected. This study analyzes the three actors, management, internal auditors and external auditors,
who are supposed to find fraud. The actors are in reality obstacles to detect fraud in this current
business environment. For instance, a survey (DeZoort & Harrison, 2018) conducted with 878
3. Journal of Accounting, Finance and Auditing Studies 5/4 (2019): 35-45
37
auditors revealed that auditors do not have clear guidance to detect fraud and are not informed about
the procedures to follow in order to detect fraud. The explanatory framework is presented in the
section 2 in which the reasons that prevent fraud detection are explained for each actor. Section 3
presents new approaches for each of the actor described in the fraud evasion triangle described in
the previous section. The last section gives the conclusion of this paper.
2. Research and the Explanatory Framework
Unlike The research is performed through a survey with open-ended questions with certified public
accountants, independent auditors and finance officers who explained different types of frauds they
witnessed. The literature review revealed that academicians mostly research from a different point
of view, hence not taking into consideration all of the main variables. The frauds can be divided into
different groups: immaterial and material losses, and also as committed by low-ranked employees
versus top management. Low-ranked employees may commit fraud with immaterial amounts that
cannot affect the sustainability of the business. If the commitment of the immaterial amounts of fraud
exists in a company, most of the employees tend to commit it as this attitude turns to be the inner
culture. Schuchter and Levi (2016) interviewed fraudsters who argued that all fraud triangle
elements are heavily influenced by the corporate culture. If low-ranked employees feel that the top
management commits fraud, they have tendency to do so as well. On the other hand, top management
may commit both immaterial and material fraud.
Figure 1. Fraud Evasion Triangle
The explanatory framework of fraud evasion triangle (Figure 1) doesn’t drive from the fraud triangle.
Fraud evasion triangle is only similar in shape and explains the three different aspects which obstruct
the detection of fraud. The identification of these three aspects may facilitate the combat with fraud
4. Journal of Accounting, Finance and Auditing Studies 5/4 (2019): 35-45
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by establishing a mechanism against these aspects. Unless these aspects are known, the global fraud
would increase as the reports measures.
2.1. Crafty Perpetrators
Even the offender has different motives. He has to know for sure the method to perform the
fraudulent act without being caught. The motives of fraudsters are not important for detecting the
fraud as every employee may commit a crime for any reason. Whichever the importance of the
motive, opportunity (PwC, 2018, p. 24), pressure to perform (Bonny et al., 2015) or rationalization
(Shepherd & Button, 2019) has no consequences over the prevention of the fraud. Fraud triangle is
not a reliable model for constructing barriers to fraud (Lokanan, 2015). The fraudster is a person
who knows the business, questions the process and the organization, and takes enough time before
acting. He is as clever as the person who can catch him. After committing fraud once, he can commit
it again as his knowledge and experiences give him trust to re-act. It is one of the reasons; this
fraudulent activity becomes a natural activity in the business so the analytical review procedures
cannot detect it. The ranking of the employee is also irrelevant in the organization in terms of the
fraud detection. Anyone in the firm can have his own arguments. The degree of corporate damage
only differs depending on the ranking. The higher in the organization, the higher the monetary harm
to the company will be.
2.2. Dependent Internal Auditors
The Internal auditing helps the organization by reviewing whether the business runs in accordance
with established rules and regulations, the departments operate effectively, and the risk
management is adequate. A global survey shows that internal audit contributes only 15% to the
initial detection of fraud, and internal control weaknesses are responsible for half of the frauds
(ACFE, 2018). The drawbacks for internal auditors to detect fraud can be summarized as follows:
2.2.1. Internal Auditors are not Independent
Internal auditors are hired by the top management, mostly by the general manager or financial
officer. It is not expected for internal auditors to check the activities of their superiors who hire them
and decide on their salaries. Internal auditors can catch, if they can, only the fraudulent activities of
subordinates whose monetary fraudulent action is often not material compared to the activities of
the top management. Additionally, top management can direct the work of the internal auditors on
irrelevant subjects in order to hide their malicious operations.
2.2.2. Internal Auditor’s Role
The role of an internal auditor does not specifically include the prevention of audit. He is responsible
for the surveillance of the smooth running business. If the fraud exists before his arrival and it has
5. Journal of Accounting, Finance and Auditing Studies 5/4 (2019): 35-45
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become a natural part of the business activities, he will not have any suspicion to distort the system.
He also most of the time checks the rules and regulations written by the departments. If the fraudster
has written the rules and regulations, the internal auditor will note that the activities are in
accordance with what has been written.
2.2.3. Lack of Experience
Internal auditors are oftenyoung people who come from the accounting or budget departments. They
are neither experienced to discover all sort of fraudulent activities in a business nor trained for
forensic audit.
2.3. External Audit does not Give Guarantee
Independent audit of financial statements is not designed to detect fraud. There are many reasons
for not expecting external audit to prevent fraudulent activities.
2.3.1. Independent Audit Objective
The independent auditor has the objective to obtain reasonable assurance and express an opinion on
the financial statements (ISA 200). The independent auditor doesn’t plan the audit to detect fraud.
The audit plan is to check whether the balances of the financial statements are correct and properly
stated. The auditor examines a very small part of the transactions that occurs during the year. For
instance, if the year-end balance is confirmed by the third party (ISA505), the auditor does not bother
about the agreement terms, prices on the invoices and even the goods or services which are fully
obtained from the suppliers.
2.3.2. Independent Audit Objective
The employee turnover is high in auditing industry. Every year fresh graduates are hired by auditing
companies. Young auditors perform most of the field work and they are trained at the job by their
supervisors and client staff. Audited company staff mostly knows that each year new auditors come
to ask the same questions. It is easy to manipulate young auditors. Auditor in charge of the
preparation of the report usually has to keep up with deadlines so that he has limited time to
supervise young auditors in the field and pay attention to details. More than young auditors, even
experienced ones may also lack sectoral expertise. The complexity of their client’s organization does
not help auditors either. Therefore, the auditors mostly try to repeat the work performed in the
previous year and do not have time to think for other issues.
2.3.3. Independent Audit Objective
Independent audit relies on the management of the audited company to establish internal controls
to have financial statements free from material misstatements, whether due to fraud or error (ISA
700). This reliance gives comfort to management to design its internal control environment. When
6. Journal of Accounting, Finance and Auditing Studies 5/4 (2019): 35-45
40
the auditor finds some delicate issues, management can respond that they will take the necessary
actions to improve the internal system. Thus, the issue is often interpreted as an isolated case by the
auditor who continues his audit tasks.
2.3.4. Materiality and Testing
Auditor is responsible for determining materiality (ISA 320). This means he has to concentrate on
large amounts and balances in order to perform the audit effectively. This is known by the audited
company staff who can easily hide fraudulent transactions in small amounts. The auditor performs
his routine and predictable audit tests (Coenen, 2010). Auditors usually apply the standard audit
programs year after year without changing anything even if a fraud is identified (Zimbelman, 1997;
Hammersley, 2011). It is easy for the fraudster to introduce fictive invoices in small amounts each
month.
2.3.5. Materiality and Testing
The accounting concept of substance over form states that goods and services purchased by the
company must be in accordance with the company’s operations, and the recording should not be
performedjust for the legal forms of the documents. This issue is very difficult for the external auditor
who cannot decide on the substance. If management has purchased goods or services and affirmed
that they are related to the business, the auditor cannot object unless it is too obvious that the
transaction is not related to the business. For instance, there is an invoice on which it is clearly
written that the service is related to the education of the children of the general manager.
2.3.6. Business Trends
Business is getting fast and complex. New business models, partnerships, mergers and acquisitions,
technological driven models and new industries evolve while the audit process follows the same
rules that are in existence since decades. Additionally, accounting estimates (ISA 540) are very
difficult for auditors who do not have technical and business specific knowledge to audit.
3. New Radical Approaches in the Combat Against Fraud
The fraud evasion triangle described in the previous section identified the three actors that have their
own drawbacks against detecting fraud. Once these actors are known, new approaches should be
formulated against the behaviours and tasks of these actors.
3.1. Crafty Perpetrators
The fight should include unconventional methods. Asare et al. (2015, p. 102) found that
whistleblower is a fraud identifier technique (36%) that is almost twice powerful as the total of
internal (12%) and external (8%) auditors’ fraud identification. Monetary incentives (Dyck et al.,
2010) encourage employee whistleblowing.
7. Journal of Accounting, Finance and Auditing Studies 5/4 (2019): 35-45
41
In terms of the degree of the damage caused, some different approaches should be taken between
managerial and non-managerial employees.
3.1.1. Managers
ACFE (2018) survey shows that fraudsters with longer service in the firm stole twice as much. Thus,
seniority increases fraud. It is logical as managers become crafty over time. The best methodology is
to limit the period of work even if the managers are successful. For instance, a CEO can achieve yearly
budgets and gain a good reputation in the eyes of the persons who hired him. However, the budget
might have been distorted to be achieved easily. The best solution is to replace the CEO after a four-
year period. He can be rotated to another position within the group. The new CEO will have the
opportunity to check all the business and notice unhealthy relations built by his predecessor. The
staff can communicate to the new CEO all the anomalies they could not tell before as they feared that
they would lose their job.
3.1.2. Non-managerial Employees
It is difficult to struggle with low amount of crimes as the number of employees is high as compared
to managerial ones. The best way is to struggle as a whole meaning that through a corporate culture.
Ethical values should be adopted to abstain all employees from committing fraud. A strong ethical
culture creates high employee moral so that employees stay away from cheating. To restore the
corporate ecosystem, concrete measures should be implemented. Some measures can be to perform
surprise controls on the employees, award the whistleblower, write rules and regulations, and
increase transparency and communication.
3.1.3. Fraud Awareness
The fraudster resigns or is fired once his action is detected. Corporate management usually tries to
solve the fraud inconspicuously to protect its reputation fearing to be heard publicly. Bonny et al.
(2015) found only half of corporate crimes were subsequently reported to law enforcement. The
fraudulent activities may decrease if all fraudsters know their actions will end up in court. The
periodic announcements and releases of news about fraud fight will increase the awareness, and may
be an important coercion to prohibit fraud.
3.2. Dependent Internal Auditors
Internal audit detects only 15% of frauds (ACFE, 2018). This cannot progress unless radical changes
occur.
3.2.1. Direct Recruitment by Shareholders
The internal auditor should be hired by the shareholders, and should directly report to the
shareholders. He should have the necessary qualities and skills: preferably an audit background, a
8. Journal of Accounting, Finance and Auditing Studies 5/4 (2019): 35-45
42
skeptical mind, accounting knowledge and a thinking mind-set to seize crafty perpetrators. He also
needs to be rotated within the firm or replaced every four or five years.
3.2.2. Autonomous Internal Auditors
Internal auditor should be autonomous to plan his schedule. He should not be influenced by the top
management about what to audit. He should have access to all the records and data within the
company. Asare et al. (2015, pp. 102-3) pointed that e-mails were most convincing evidence by 40%
as compared to accounting records which represented 36%. The internal auditor should have a
different perspective and the authorization to review all the e-mails.
3.2.3. Training
Company should invest in the internal auditing department and the auditors should get the necessary
trainings. The training should integrate forensic audit and other activities such as workshops and
webinars on this subject.
3.2.4. Communication
Internal auditors should communicate with other internal auditors in other companies as bribery in
the form of invoice kickbacks and bid riggings involve the counter party as well. Discussions with the
counterpart can help the auditor gain experience and also understand anomalies if there are any.
3.3. External Audit does not Give Guarantee
The current business model for audit firms cannot be a solution for fraud detection. Fundamental
changes are needed.
3.3.1. Specialized Fraud Auditors
In the independent audit firms, tax accounts are usually checked by tax specialists in the audit firm.
A similar approach should be taken for fraud assessment. The financial statement auditor should
continue their traditional audit. Specialized fraud auditors can perform different tests and conduct
surprise procedures.
3.3.2. Appointment of the Auditor by a Centralized Authority
A review of studies about audit rotation implies that it is time to search for other solutions for auditor
independence (Zubairu et al., 2019). Management has willingness to work with auditors they know.
On the other hand, auditors have the expectation to renew audit engagements. This dependency can
always smooth the auditor’s opinion. The appointment of the auditor directly by a body, for instance
Public Oversight Accounting and Auditing Standards Board, will give real independency to the
external auditor.
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3.3.3. Minimize the Audit Expectation Gap
The expectations of the users of the financial statements differ from what the independent auditors
provide actually (Liggio, 1974) even if some research results (Beattie et al., 1998; Pourheydari &
Abousaiedi, 2011; Saha et al., 2019) contradict. The increased communication between the
independent auditors and the users of the reports will contribute to the realization of the aims of
each group. When the users are aware of the primary responsibility and the audit methodology of
the auditors, they can implement other solutions to prevent fraud.
4. Conclusion
This paper constructed three pillars that prevent the detection of corporate fraud. As the motives of
the fraud triangle suggest, certain employees will continue to commit fraud. The internal auditor who
is hired by the management cannot plan independently to include the audit of the top management.
He will be limited and even replaced if he tries to control the topics that top management does not
desire. As the main objective is the efficiency of the business, the internal auditor works to ameliorate
the internal system. It is improbable for him to find a fraud unless he searches a specific area. The
responsibility of the external auditors on the audit of the financial statements does not include fraud.
Audit process is not designed to detect fraud, and the auditor’s report states that company’s
management is responsible for the internal control system so that the financial statements are free
from material misstatement, whether due to fraud or error. The actors who are supposed to detect
frauds cannot prevent fraudulent activities in today’s corporate design and auditing business.
Corporate fraud will increase as the recent surveys point out unless some radical solutions are
implemented as recommended in this paper. If all the stakeholders really desire to reverse the
increasing global fraud, comprehensive radical changes should be implemented with regard to the
parties described in the fraud evasion triangle. This paper identifies factors and offers concrete
solutions for each factor that prevents the detection of fraud. Future research would be to discuss the
practical implications of the recommendations put forward by this paper, and test them empirically.
References
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statement fraud: insights from fraud investigations. Journal of Forensic & Investigative
Accounting, (7)2, 64-112.
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