The construction of the risky individual and vigilant organization: A genealogy of the fraud triangle

Moralès, Jérémy; Gendron, Yves; Guénin-Paracini, Henri

doi:10.1016/j.aos.2014.01.006

Cited by 162 publications

(279 citation statements)

References 55 publications

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“…Nevertheless, the complexity of frauds committed, and other illegal financial crimes makes it difficult to come up with one causal theory [16]. According to Morales, Gendron, and Guénin-Paracini [17], other ideas on the prevention of frauds should focus on the broader roles of, for example, society, governance programs and economic institutions. For instance, Cieslewicz [18] stated that fraud is a global problem and societal-level determinants vary across nations.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

An Investigation of the Influence of the Worldwide Governance and Competitiveness on Accounting Fraud Cases: A Cross-Country Perspective

et al. 2018

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This article examines how worldwide governance, global competiveness, and other institutional determinants have influenced the number of accounting fraud cases in several countries. The researchers have focused more closely on the importance of 'good governance' as one of the indicators of development objectives in itself. The institutional perspective is employed to explain the complexity of frauds in different societies which can be compatible for the purposes of international judgments in order to increase the effectiveness of previous forensic accounting theories. In this paper, a linear regression model is tested where governance, competitiveness, and other institutional variables are associated with a measure of accounting fraud cases. From our results, we can merely claim that an increased level of controlled corruption and political stability might reduce the number of fraud cases in various countries, while more effective and independent governance services with a higher freedom of expression seemed to increase them. The existence of accounting crimes also appeared to be a suitable proxy of better competitiveness. Anglo-Saxon countries have more stated fraud cases than other countries, attributed, perhaps, to the finest commercial courts with the most professional and least corrupt judges in the world, with centuries of precedent cases and experience in dealing with fraud. Moreover, we believe that a better understanding of fraud detection is a potentially important element in forensic accounting analytics in the success of governance policies to enhance development and reduce the risk of bankruptcies related to the reported fraud cases of enterprises.

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Section: Theoretical Backgroundmentioning

confidence: 99%

An Investigation of the Influence of the Worldwide Governance and Competitiveness on Accounting Fraud Cases: A Cross-Country Perspective

et al. 2018

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“…It is hoped that, by charting this course, the paper not only provides a more nuanced understanding of financial crimes, but answers previous calls for more research in this direction (Braithwaite, 2013;Donegon & Gagon, 2008;Lokanan, 2015b;Morales, Gendron, & Guénin-Paracini, 2014). …”

Section: Introductionmentioning

confidence: 99%

“…Rather, SAT is part of the ongoing scholarship to encourage debate as we work together to tweak existing theories (Anand et al, 2014) or create new theories that capture the vast array of how fraud is perpetrated (Braithwaite, 2013;Donegan & Ganon, 2008). In this regard, the postulates of SAT are seen as gateways for a more collective perspective to the study of financial fraud and answer calls for research on the macro-sociological explanation of financial crimes (Cooper et al, 2013;Davis & Pesch, 2013;Donegan & Ganon, 2008;Dorminey, Fleming, Kranacher, & Riley, 2010;Lokanan, 2015a;Morales et al, 2014).…”

Section: Introductionmentioning

confidence: 99%

Theorizing Financial Crimes as Moral Actions

Lokanan

2017

European Accounting Review

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Abstract:The paper maintains that all acts of financial crimes can be explained within a general theory of moral action and analyzed as such. In this regard, the paper presents such a theorySituational Action Theory (SAT) -and argues that acts of financial crimes result from a perception-choice process involving rational deliberation and experimental habituation, themselves the outcomes of interactions between individuals and their environments. To examine this argument, the paper draws on two recent high profile fraud cases to critically discuss the extent to which these crimes should be meaningfully and innovatively analysed as moral actions and the moral context in which they occur. The findings indicate that the feature most relevant to a criminogenic is its moral context in relation to the opportunities and frictions that it generates. As such, environmental factors along with psychosocial processes of moral education become particularly important in the explanation of why certain moral contexts emerge in particular kinds of settings at a particular point in time. In this regard, SAT can be used as a powerful overarching framework to gain a more comprehensive understanding of peoples' choice processes to breach moral rules and devise effective crime prevention strategies to combat fraud.

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“…Several theories were used, from those related to organizations (i.e., institutional theory) to fraud itself (i.e., fraud triangle). While the fraud triangle framework has been used in a vast majority of accounting and auditing research, we note that the fraud triangle has come under criticism of late (Morales et al 2014). We encourage this debate as we work together to tweak existing theories or create new theories that capture the vast array of how fraud is perpetrated.…”

Section: Ideas For Future Researchmentioning

confidence: 99%

“…Within some studies in the literature, fraud is portrayed as being perpetrated by an individual who has some type of character flaw (Morales et al 2014), or as perpetrated by individuals influenced by their social group (Sutherland et al 1992) or influenced by external groups such as consumers (Pierce and Snyder). Given this paucity of grouplevel research, it is encouraging to see papers such as Albrecht et al's which specifically examine group-level research.…”

Section: Perpetrators Of Fraudmentioning

confidence: 99%