The Disposition-Based Fraud Cycle

2013 ◽  
Vol 2 (2) ◽  
pp. 56-76 ◽  
Author(s):  
Vasant Raval
Keyword(s):  
Risk Factors ◽  
Empirical Evidence ◽  
Potential Role ◽  
Chief Executive ◽  
Financial Fraud ◽  
Fraud Triangle ◽  
Considerable Influence ◽  
Fraud Risk ◽  
The Past

This paper reviews the disposition-based fraud cycle (DFC) primarily from the perspective of financial frauds. It suggests that fraud as a human act represents an interaction between organism’s disposition and the circumstances he faces. The DFC model which maps financial fraud as a cycle driven by desire-belief connection is contrasted with the widely accepted paradigm called the Fraud Triangle (FT). A purpose of the analysis is to identify unique fraud-risk factors visible in the DFC model. Empirical evidence from the past studies is discussed to show relevance of the DFC model, and its potential role in preventing and detecting financial fraud. Although the model is applicable to all kinds of fraudulent acts, the focus of this study is on the powerful chief executive with considerable influence within the organization she leads.

Fraud risk factors and tendency to commit fraud: analysis of employees’ perceptions

2019 ◽  
Vol 35 (4) ◽  
pp. 545-557
Author(s):  
Jesi Rizky Anindya ◽  
Desi Adhariani
Keyword(s):  
Risk Factors ◽  
Sampling Method ◽  
Small Samples ◽  
Dominant Factor ◽  
Fraud Triangle ◽  
Fraud Prevention ◽  
Content Type ◽  
Unethical Conduct ◽  
Fraud Risk ◽  
Convenience Sampling

Purpose This study aims to determine the fraud risk factors perceived by employees to have the greatest influence on individuals committing fraud as an unethical conduct, as well as to analyze employees’ opinions on fraud prevention program. Design/methodology/approach The fraud risk factors in this study are based on the concept of the fraud triangle as developed by Donald Cressey, as well as examples of situations set out in SAS No. 99. The samples used in this study are company employees who have been selected using the convenience sampling method. Findings A survey of 109 employees reports that none of the three factors (pressure, opportunity and rationalization) has a significant influence on fraud. However, when comparing the factors, the pressure is considered to have the highest impact. In terms of fraud prevention, the employees suggest that it is extremely important to implement all prevention tools, especially with regard to the adequate segregation of duties. Research limitations/implications Limitations of this study in terms of method and small samples are expected to inform future studies to overcome the limitations by using other methods such as interview and by collecting more respondents to gather their perceptions and opinions. Originality/value This study contributed to the literature in confirming the pressure as the dominant factor and in confirming the importance of anti-fraud programs as suggested by the agency theory.

scholarly journals Fraud Risk Factors of Fraud Triangle and the Likelihood of Fraud Occurrence: Evidence from Malaysia

2014 ◽  
Vol 6 (1) ◽  
pp. 1-7 ◽  
Author(s):  
Shabnam Fazli Aghghaleh ◽  
Zakiah Muhammaddun Mohamed .
Keyword(s):  
Risk Factors ◽  
Risk Factor ◽  
Logistic Model ◽  
Audit Committee ◽  
Financial Statement ◽  
Fraud Triangle ◽  
Financial Statement Fraud ◽  
Fraud Risk ◽  
Available Information ◽  
Binary Logistic Model

The current research studies the usefulness of Cressey’s fraud risk factor framework adopted from SAS No. 99 to prevent fraud from occurring. In accordance with Cressey’s theory, pressure, opportunity and rationalization are existing when fraud occurs. The study suggests variables as proxy measures for pressure and opportunity, and test these variables using publicly available information relating to a set of fraud firms and a sample of no-fraud firms. Two pressure proxies and two opportunity proxies are identified and suggested to be significantly related to financial statement fraud. We find that leverage and sale to account receivable are positively related to the likelihood of fraud. Audit committee size and board of directors’ size are also linked to decrease the level of financial statement fraud. A binary logistic model based on examples of fraud risk factors of fraud triangle model measures the likelihood of financial statement fraud and can assist experts.

scholarly journals Financial Statement Fraud Risk Factors of Fraud Triangle: Evidence From Indonesia

2020 ◽  
Vol 11 (4) ◽  
pp. 36
Author(s):  
Hasni Yusrianti ◽  
Imam Ghozali ◽  
Etna Yuyetta ◽  
Aryanto Aryanto ◽  
Eka Meirawati
Keyword(s):  
Risk Factors ◽  
Financial Stability ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statement ◽  
Company Size ◽  
Fraud Triangle ◽  
Financial Statement Fraud ◽  
Fraud Risk ◽  
Industry Risk

The purpose of this study is to examine the risk factors that influencing financial statement fraud. Especially, it examines the influence of rationalization, pressure, and opportunity on the fraudulent financial statements and also examines the interaction effect of industry risk and company size on the relationship between rationalization, pressure, and opportunity on financial statement fraud. Secondary data were collected from Bloemberg Data Base, IDX and OJK RI. The population in this study is companies listed on the Indonesia Stock Exchange in the moving year from 2011 to 2017 and the sample was selected by companies that indicated financial statement fraud and those that did not indicate financial statement fraud. The company indicated by Fraud was collected from Bapepam and OJK RI. Data were tested using logistic regression analysis and different T-tests of 28 committed fraud companies and 28 companies that did not commit fraud. The results showed that only some variables had a significant effect on financial statement fraud, namely financial stability (ACHANGE), Financial Target (ROA), and the Nature of Industry (ARCHANGE). The results also show that company size and industry risk do not moderate the fraud factors on financial statement fraud. These results support the fraud triangle theory in explaining the phenomena of financial statement fraud.

Fraud Risk Factors of Cressey’s Fraud Triangle Theory: Evidence From Korea

2017 ◽  
Vol 32 (2) ◽  
pp. 291-314
Author(s):  
Bok－Hyun Cho ◽  
◽  
Young－Gyu Ahn ◽  
Keyword(s):  
Risk Factors ◽  
Fraud Triangle ◽  
Fraud Risk ◽  
Triangle Theory

scholarly journals Fraud Risk Factor Of The Fraud Triangle Assessing The Likelihood Of Fraudulent Financial Reporting

2011 ◽  
Vol 7 (2) ◽  
Author(s):  
Yung-I Lou ◽  
Ming-Long Wang
Keyword(s):  
Risk Factors ◽  
Financial Reporting ◽  
Forecast Error ◽  
Fraud Triangle ◽  
Font Size ◽  
Fraudulent Financial Reporting ◽  
Fraud Risk ◽  
Related Party Transaction ◽  
Financial Pressure ◽  
Simple Logistic

<p class="MsoNormal" style="text-justify: inter-ideograph; text-align: justify; line-height: 12pt; margin: 0in 36.1pt 0pt 0.5in; mso-line-height-rule: exactly;"><span style="font-family: Times New Roman;"><span style="font-size: 10pt;">This research examines risk factors of the fraud triangle, core of all fraud auditing standards, for assessing likelihood of fraudulent financial reporting. Significant variables, including analyst&rsquo;s forecast error, debt ratio, directors&rsquo; and supervisors&rsquo; stock pledged ratio, percentage of sales related party transaction, number of historical restatements, and number of auditor switch, belong to pressure/incentive, opportunity and attitude/rationalization.</span><span style="font-size: 10pt; mso-fareast-font-family: DFKai-SB;"> Results indicate </span><span style="font-size: 10pt;">fraudulent reporting</span><span style="font-size: 10pt; mso-fareast-font-family: DFKai-SB;"> positively correlated to one of the following conditions: more financial pressure of a firm or supervisor of a firm, higher percentage of complex transactions of a firm, more questionable integrity of a firm&rsquo;s managers, or more </span><span style="font-size: 10pt; mso-font-kerning: 0pt;">deterioration in relation between a firm and its auditor</span><span style="font-size: 10pt; mso-fareast-font-family: DFKai-SB;">. A</span><span style="font-size: 10pt;"> simple logistic model based on examples of fraud risk factors of ISA 240 and SAS 99 gauges the likelihood of fraudulent financial reporting and can benefit practitioners.</span></span></p>

Differentiating risk factors of Ponzi from non-Ponzi frauds

2019 ◽  
Vol 26 (4) ◽  
pp. 993-1005 ◽  
Author(s):  
Vasant Raval ◽  
Vivek Raval
Keyword(s):  
Risk Factors ◽  
Risk Mitigation ◽  
Mitigation Measures ◽  
Financial Fraud ◽  
Research Approach ◽  
Content Type ◽  
Fraud Risk ◽  
Separate Class ◽  
Practical Implications

Purpose This paper aims to analyze the attributes of Ponzi schemes (“Ponzis”) to determine whether they are a unique class of financial fraud. Design/methodology/approach The authors apply the disposition-based fraud model to classify and differentiate the attributes of Ponzis. This classification exercise helps comprehend the distinct drivers of Ponzis. Findings Fraud risk factors of Ponzis are different from those involved in other financial frauds. Four propositions about risk and risk mitigation measures are developed. Research limitations/implications The research approach used is conceptual, not empirical. However, the insights from this exercise should inform how different Ponzis are from other financial frauds and why they should be treated as a separate class for prevention and enforcement. In turn, this may trigger an interest in empirical research focused on the unique risks of Ponzis. Practical implications Knowledge of risk factors unique to Ponzis will permit a consideration of customized risk mitigation measures to prevent or detect Ponzis. Enforcement actions can also become more effective because of a distinct risk-based classification of Ponzis. Social implications The prevention of damage from Ponzis hinges upon how well prospective victims are educated to become aware of signs of Ponzis. This should lead to the more effective protection of investors from victimization from Ponzi schemes. Originality/value The implicit understanding that all financial frauds are alike and that the risk-factors involved are substantially the same across all classes of fraud is challenged. This revelation opens opportunities to add value through focused research on Ponzis as a distinct class of fraud.

scholarly journals FRAUD DIAMOND DALAM FINANCIAL STATEMENT FRAUDFRAUD DIAMOND DALAM FINANCIAL STATEMENT FRAUD

2016 ◽  
Vol 4 (2) ◽  
pp. 98
Author(s):  
Faiz Rahman Siddiq ◽  
Sofyan Hadinata
Keyword(s):  
Risk Factors ◽  
Earnings Management ◽  
Financial Statements ◽  
Financial Statement ◽  
Earnings Manipulation ◽  
Fraud Triangle ◽  
Financial Statement Fraud ◽  
Fraud Risk ◽  
Fraud Theory ◽  
Triangle Theory

The financial statements will become more qualified in the<br />presentation if the presentation is based on qualitative<br />elements, among others: easy to understand, reliable,<br />comparable (comparable), and relevant. The financial<br />statements are presented to stakeholders, namely:<br />management, employees, investors (shareholders), creditors,<br />suppliers, customers, and government. Fraudulent financial<br />reporting was a deliberate attempt by the company to deceive<br />and mislead the users of financial statements, especially<br />investors and creditors, to present and manipulate the material<br />value of the financial statements. Manipulation gain profit<br />(earnings manipulation) for the company's desire that the stock<br />remains attractive to investors. Fraud triangle theory expressed<br />by Cressey later developed by Wolfe and Hermanson (2009)<br />with theory. Fraud diamond diamond fraud theory consisted of<br />four fraud risk factors are pressure, opportunity, rationalization<br />and capability. Diamond fraud theory can be used in predicting<br />fraud in proksikan with earnings management.

Socially Shared Regulation of Learning: A Review

2015 ◽  
Vol 20 (3) ◽  
pp. 190-203 ◽  
Author(s):  
Ernesto Panadero ◽  
Sanna Järvelä
Keyword(s):  
Empirical Evidence ◽  
Learning Theory ◽  
Qualitative Data ◽  
Social Regulation ◽  
Observation Data ◽  
Optimal Form ◽  
Self Regulated Learning ◽  
The Past ◽  
Recorded Observation ◽  
Socially Shared Regulation

Abstract. Socially shared regulation of learning (SSRL) has been recognized as a new and growing field in the framework of self-regulated learning theory in the past decade. In the present review, we examine the empirical evidence to support such a phenomenon. A total of 17 articles addressing SSRL were identified, 13 of which presented empirical evidence. Through a narrative review it could be concluded that there is enough data to maintain the existence of SSRL in comparison to other social regulation (e.g., co-regulation). It was found that most of the SSRL research has focused on characterizing phenomena through the use of mixed methods through qualitative data, mostly video-recorded observation data. Also, SSRL seems to contribute to students’ performance. Finally, the article discusses the need for the field to move forward, exploring the best conditions to promote SSRL, clarifying whether SSRL is always the optimal form of collaboration, and identifying more aspects of groups’ characteristics.

Acid ceramidase, a double-edged sword in cancer aggression: A minireview

2020 ◽  
Vol 20 ◽  
Author(s):  
Helen Shiphrah Vethakanraj ◽  
Niveditha Chandrasekaran ◽  
Ashok Kumar Sekar
Keyword(s):  
Cell Fate ◽  
Cancer Progression ◽  
Potential Role ◽  
Tumour Progression ◽  
Acid Ceramidase ◽  
The Core ◽  
The Past ◽  
Sphingosine 1 Phosphate ◽  
Key Enzyme

: Acid ceramidase (AC), the key enzyme of the ceramide metabolic pathway hydrolyzes pro-apoptotic ceramide to sphingosine, which by the action of sphingosine-1-kinase is metabolized to mitogenic sphingosine-1-phosphate. The intracellular level of AC determines ceramide/sphingosine-1-phosphate rheostat which in turn decides the cell fate. The upregulated AC expression during cancerous condition acts as a “double-edged sword” by converting pro-apoptotic ceramide to anti-apoptotic sphingosine-1-phosphate, wherein on one end, the level of ceramide is decreased and on the other end, the level of sphingosine-1-phosphate is increased, thus altogether aggravating the cancer progression. In addition, cancer cells with upregulated AC expression exhibited increased cell proliferation, metastasis, chemoresistance, radioresistance and numerous strategies were developed in the past to effectively target the enzyme. Gene silencing and pharmacological inhibition of AC sensitized the resistant cells to chemo/radiotherapy thereby promoting cell death. The core objective of this review is to explore AC mediated tumour progression and the potential role of AC inhibitors in various cancer cell lines/models.

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