Authors: Parvati T. Soneji
Addresses: Department of Commerce, Banasthali Vidyapeeth, Jaipur, Rajasthan, 304 022, India
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.
Keywords: fraud; fraud theory; management fraud; financial fraud; fraud diamond theory; fraud triangle theory; fraud pentagon theory; white collar crime; forensic accountant; forensic accounting.
International Journal of Accounting, Auditing and Performance Evaluation, 2022 Vol.18 No.1, pp.49 - 60
Received: 15 May 2021
Accepted: 06 Aug 2021
Published online: 04 Jun 2022 *