Transformational Research of the Fraud Triangle

Mackevičius, Jonas; Giriūnas, Lukas

doi:10.15388/ekon.2013.0.2336

Cited by 40 publications

(33 citation statements)

References 17 publications

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“…This result is consistent with the one conducted by [8]. It appears that the ratio of independent commissioners in banking companies is mainly to fulfill the requirements set by government.…”

Section: F Logistic Regression Analysissupporting

confidence: 92%

Fraud Diamond Model for Fraudulent Financial Statement Detection

Handoko¹,

Natasya²

2019

IJRTE

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Many cases of fraud that occur and are revealed. something happened in the realm of employee fraud and fraud management. One of the frauds that causes substantial losses is fraudulent financial reporting. Fraudulent financial statement becomes one of the fraud schemes that growth simultaneously within the current years. Many of this fraud scheme cause large sum amount of loss to investor, creditors and other financial statement user. The purpose of this research is to gain empirical evidence about financial statements fraud detection using fraud diamond elements. This research is conducted on listed banking companies in Indonesia Stock Exchange year 2014-2018. There is a total of 190 samples companies used in this research which further analyzed by using Logistic Regression Analysis. Statistical test is conducted to test the hypothesis. The test included: determination of coefficient, logistic regression and partial hypothesis testing. Fraudulent financial statement is proxies by Beneish M-score. The research concluded that Pressure proxies by Changes in Total Assets affects significantly to fraudulent financial statements detection. Meanwhile, Pressure proxies by Return on Assets, Opportunity proxies by Ratio of Independent Board of Commissioners, Rationalization proxies by Changes of External Auditor and Capability proxies by Changes in Board of Director do not affect significantly towards fraudulent financial statements detection. Determination of coefficient test result indicates that 20% of fraudulent financial reporting was able to be explained by pressure, opportunity, rationalization and capabilities.

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Section: F Logistic Regression Analysissupporting

confidence: 92%

Fraud Diamond Model for Fraudulent Financial Statement Detection

Handoko¹,

Natasya²

2019

IJRTE

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“…The emergence of the research pertaining to fraud around the world has been triggered by the fraud phenomenon in the last decade. Mackevicius and Giriunas (2013) state that fraud has been one of the most negative factors of a society since many years ago. Fraud has been done by a person to take benefits as well as an action that brings disadvantageous other people by doing a deceptive action (Samociuk dan Iyer, 2010).…”

Section: Introductionmentioning

confidence: 99%

“…Ramamoorti (2008) as stated in Dorminey, et al (2012) state that the fraud research must be performed by integrating people behavior because fraud cannot be separated from people behavior element. The Fraud triangle which consists of pressure, opportunity and rationalization is depicted by Cressey in Mackevicius and Giriunas (2013) as stated in figure 1. Research related to the fraud triangle has been performed by many researchers, which focus on pressure and opportunity element.…”

Section: Introductionmentioning

confidence: 99%

The Fraud Behavior From The Perspectives Of The Fraud Triangle: An Indonesian Case

Nugraha¹,

Susanto²

2018

Proceedings of the 2018 Annual Conference of Asian Association for Public Administration: "Reinventing Public Administration In

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The purpose of this paper is to explore the fraud behavior from the perspective of fraud triangle. Based on the literature review and two samples of the fraud cases, it can be concluded that fraud happens when there are pressure, opportunity, and the rationalization. Sandhu (2016) states that strong ambition, personal financial problem, law problem, family problem includes unsatisfactory with current jobs are indicators that represent the pressure element in the fraud triangle theory. Meanwhile, Sanusi et al. (2015) find that internal control framework relates to opportunity element. Therefore, in the fraud triangle perspective, the opportunity is a loop hole for a fraudmaker in that internal control. The fraudmakers try to maximize their probability in doing the fraud among the existence of the internal control. However, the fraud triangle theory states that although all other two components of the fraud triangle have been existing, if there is not any rationalization in doing the fraud, the fraud will not happen. The two cases that have been explored in the paper confirm the importance of the rationalization as a crucial part of the fraud behavior. The fraudmakers use their justification in order to rationalize their fraud behavior. As the characteristic of the literature review is only focus on the theory and literature, which is limited only to describe the fraud behavior in the theoretical perspective, therefore the future research recommendation is implementing this literature review with the real research, which is exploring the fraud behavior and the rationalization of the fraudmaker by in-depth interview. Another recommendation for the future research is to elaborate the rationalization element of the fraud triangle theory.

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“…The fraud triangle characteristics developer (Cressey) explains that the variables of possibilities, pressures, and personal excuses are present when a person commits fraud (Cressey, ; Mackevicius & Giriunas, ). The fraud triangle can detect fraud by highlighting variables that lead to fraud such as pressure, opportunity, and rationalization.…”

Section: Literature Reviewmentioning

confidence: 99%

Two‐Step Fraud Defense System: Prevention and Detection

Riney¹

2018

J Corp Accounting Finance

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In today's local and global economy, similarities exist among companies in the types of fraud documented, lack of internal controls, and weak authorizing hierarchy that lead to the increase of fraudulent acts and the decrease of revenue. Since similarities exist, standard practices such as a combination of prevention and detection tools, will minimize the risks associated with fraud and make vulnerable organizational structures stronger and resistant to fraud tactics. © 2018 Wiley Periodicals, Inc.

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Transformational Research of the Fraud Triangle

Cited by 40 publications

References 17 publications

Fraud Diamond Model for Fraudulent Financial Statement Detection

Fraud Diamond Model for Fraudulent Financial Statement Detection

The Fraud Behavior From The Perspectives Of The Fraud Triangle: An Indonesian Case

Two‐Step Fraud Defense System: Prevention and Detection

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