Fraud Governance and Good Practices Against Fraud

Fraudulent Activities In A Corporate Level

Corruption is now being viewed as one economic obstacle and not just a subversive act i. There are some warning signs of fraud, according to Heiman-Hoffman et al. (1996). For example, when managers ignore internal auditors or if the administration indicates that the organizations show grave disrespect. The triangle of fraud and diamond of fraud are the two most common models used in the literature of fraud. The criminologist Cressey Donald created a fraud theory that involves three fraud elements (Wells, 2000). Initially, there is a business-related stimulus (e.g., accomplishment of high targets or funding need). Nonetheless, it typically comes for personal purposes, such as greed, revenge, and delinquency. Instead, if circumstances allow, the chance. for eg, weak or unusual control or the management's ability to bypass controls and laws. Finally, moral justification is the requisite excuse that the fraud person uses to overcome any moral barriers that differentiate him. A new model was used by Wolfe & Hermanson (2004) to complete the triangle of fraud and add the element of indivual portion in the equation of committing a fraud.

Forging financial statements is the third row type of financial fraud, according to a study carried out by the Association of Accredited Fraud Examiners (2016). First of all, the misappropriation of funds and secondly, corruption. Corruption is the number one hurdle for economic growth and development (Healy & Serafeim, 2012) according to a World Bank survey of more than 150 government officials and citizens of 60 nationalities. This research explores the attempts they make to combat corruption in 480 of the world's largest corporations.