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Research Journal of Social Science & Management - RJSSM - The ...
Research Journal of Social Science & Management - RJSSM - The ...
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1. Risk factors research<br />
Reduce fraud risk factors and fraud triangles<br />
Risk Factors<br />
• Living beyond means<br />
• Financial difficulties<br />
• Control issues, unwillingness to share duties<br />
• Unusually close association with vendor/customer<br />
• Wheeler-dealer attitude<br />
• Divorce/family problems<br />
• Irritability, suspiciousness, or defensiveness<br />
• Addiction problems<br />
• Refusal to take vacations<br />
• Past employment-related problems<br />
• Complained about inadequate pay<br />
• Excessive pressure from within organization<br />
• Past legal problems<br />
• Instability in life circumstances<br />
• Excessive family/peer pressure for success<br />
• Complained about lack <strong>of</strong> authority<br />
Add<br />
Fraud Triangle<br />
• Pressure<br />
• Opportunity<br />
• Rationalization<br />
Fraud Committed<br />
• Asset Misappropriations<br />
• Corruption<br />
• Fraudulent Statement<br />
If it cannot reduce<br />
risk factors and<br />
fraud triangles<br />
Corporate<br />
Governance<br />
Risk factors<br />
finding from<br />
research<br />
2. Financial information<br />
and attitude & behavior<br />
surveys<br />
Important rules for<br />
fraud potential for<br />
each risk factor<br />
(data mining)<br />
3. System development<br />
Develop fraud<br />
deterrence model<br />
Develop fraud<br />
deterrence system<br />
Figure 2: Conceptual framework for fraud deterrence system in the organization<br />
Investigation report<br />
Investigation (Forensic<br />
accountant)<br />
Reasons for not<br />
validating<br />
Start<br />
Collect attitude and<br />
behavior survey and<br />
records<br />
Risk assessment process<br />
Evaluation validation<br />
process<br />
Validate<br />
Validation report<br />
Figure 3: Work flow process for fraud deterrence system<br />
www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 10, Feb-2012 Page 91