APA RESEARCH PAPER

APA Research Paper

Fraud Triangle

Introduction

Three elements should be present to your organization determines if is victim of fraud. It consists of three specific conditions generally when this fraud occurs. The three key elements in the fraud triangle are opportunity, motivation, and rationalization (Dutta, 2008).

Despite the fact that there are thousands of ways to commit fraud, there are three basic elements inherent in the fraud. These three elements, which form together the so-called triangle of fraud and determine the motivation and opportunity to commit fraud, are: 1) the pressure of financial and other circumstances; 2) the opportunity to commit and conceal some time act of fraud; 3) the ability to justify this action.

Every crook confronted with some pressure of external circumstances, the majority of circumstances connected with the financial troubles. However, the motivating factor could be the pressure of circumstances, not related to finance, such as the need to show a better record than the reality of performance, antipathy to his work or even the desire to "punish the whole system." The second element of fraud triangle is opportunity to commit it. The third element of the fraud triangle is a kind of justification of fraud to ourselves that it is not at odds with some "code of honor" swindler (Mancino, 2007).

Main objective of this study is the audit risk, including fraud risk, reference model, and reasonable audit evidence to determine the combination of this model, which will result in the risk assessment audit of about 0, 05 or less, most importantly, the model increased to the exposure (AICPA 2002) account of the latest draft of the case required, the revised SAS ? 82. This improved model features, then a formal assessment. These models are based on audit evidence (Srivastava and Shafer 2002), audit planning network (simulation al.2008) and fraud risk assessment (Turner et al.2002) research results. To achieve these goals, the paper has developed a network of evidence, it has two main sub-networks: one to capture the risk assessment and risk audit of financial statements and other common risk relations capture the relationship between evidence and evidence of fraud. In view of (mock, 2002) Previous studies have investigated the basic characteristics of such a framework, this paper explores the impact, it seems that the risk of fraud and audit the complex relationship between the main factors. In particular, the following research questions were investigated: RQ1: What is the interaction between the audit and the impact of stimulus integrity of the business risk? RQ2: What is the audit risk communication and management incentives and opportunities of business integrity and honesty? RQ3: What is the risk of audit of the audit program updates?

Discussion

ED published for public comment in February 2002 provides for three categories of factors that may be related: the pressure and incentives, opportunities and relationships and rationalize, these three categories are referred to in the work of Montgomery et al. (2002), "fraud triangle." 2 Fraud triangle should be, but not officially, the relationship between these three ...