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Purpose: This paper aims to investigate the role of forensic accounting skills in enhancing auditor's self-efficacy towards fraud detection in Egypt. Additionally, it explores the moderating effect of computer-assisted audit techniques and tools (CAATTs) application on the relationship between accounting and auditing skills and auditor's self-efficacy, as well as its role in enhancing fraud detection. Design/methodology/approach: A cross-sectional survey was developed and distributed to 117 external auditors working in Egypt. Partial least square structural equation modelling is used to examine the study hypotheses. Findings: The results show a significant direct relationship between effective communication skills, psycho-social skills, accounting and auditing skills and an auditor's self-efficacy. Additionally, the results show a significant direct relationship between auditor's self-efficacy and fraud detection. It is revealed that CAATTs application moderate the relationship between auditor's self-efficacy and fraud detection. In contrast, the results do not show a significant relationship between technical and analytical skills and auditor's self-efficacy. Originality/value: The originality of this research paper lies in its exploration of the role of forensic accounting skills in enhancing auditor's self-efficacy towards fraud detection in Egypt. It sheds light on the role of improved auditor's self-efficacy in detecting fraud. Additionally, this study further enhances the understanding of the potential benefits of using technological advancements in the audit process. It provides insights for accounting professionals and regulatory bodies in Egypt, highlighting the importance of leveraging forensic accounting skills and using CAATTs to enhance fraud detection efforts. [ABSTRACT FROM AUTHOR]

This research aims to reduce fraud risks in Indonesian banks and non-bank financial institutions providing microloan services. The study employs data analytics and machine learning techniques using employee data from Bank X spanning 2017-2019 with samples of 28,004 workers (2017-2018) and 27,274 employees (2019). Confirmatory factor analysis and XGBoost predictive modelling are applied within the fraud triangle framework to identify critical fraud risk indicators related to employee pressure. An algorithmic approach categorizes personnel based on fraud risk ratings enabling the detection of potentially suspicious activities for proactive intervention. The analysis reveals that incorporating data analytics into governance, risk management and compliance (GRC) systems can accurately forecast fraud probability by focusing on factors associated with employee pressure and opportunities. This facilitates targeted fraud prevention solutions by integrating control mechanisms, risk processes and auditing standards. The predictive model provides valuable insights for policymakers to combat fraud by enhancing governance and risk management practices specific to microloans. This research concludes that the predictive model is a pragmatic decision-making tool for banks offering micro-loans. It mitigates dangers by detecting high-risk personnel and transactions. Integrating data analytics with robust GRC frameworks enables financial institutions to uphold integrity through proactive fraud monitoring and targeted preventive interventions tailored to identify risk profiles. The study offers an integrated technological organizational approach to protect microlending activities. [ABSTRACT FROM AUTHOR]

In the modern advanced construction industry, students are required to engage in active learning and critical thinking to deliver defect-free outputs and ensure user satisfaction. Case-based learning is an approach that fosters active learning among students. The aim of this research is to present the educational experiences of students and the teaching advances by the educators involved in case-based learning assignments. 155 students enrolled in the people management course received information on theories and their application at construction sites. Case-based learning and teaching were implemented to fulfil the course objectives, focussing on ongoing projects, site defects and the fraud triangle theory as the scope of the case. Students conducted semi-structured interviews with the site personnel, transcribed the recordings and analysed them by referencing the brief notes provided by the educators. The findings indicate that the students exhibited better performance in the learning environment. Case-based learning enhanced their research skills, communication, collaboration, ethical values, engagement and continuous improvement. The findings also show that the significance of appropriate teaching materials and efficient team teaching in case-based teaching is paramount. These elements are essential for creating an engaging learning environment that supports qualitative educational approaches and thereby improves student learning outcomes. [ABSTRACT FROM AUTHOR]

This study aims to determine the measures that can be taken to prevent fraudulent tendencies of employees using the three lines model that can be developed in businesses. In fulfilling this purpose, the five components of the fraud pentagon have been taken into account, which are: pressure, opportunity, rationalization, competence, and arrogance. This study is based on the pentagon theory of behaviour development and committing fraud within organizations. Employees' tendency to commit fraud based on the five components of the fraud pentagon theory, can be reduced by following measures in efficient three lines processes. This study theoretically examines the fraud pentagon in the field of behavioural accounting. In this study, data were collected using qualitative research technique. In addition, this study contributes to the integration of fraud prevention practices into the control processes of enterprises. [ABSTRACT FROM AUTHOR]

Although financial fraud detection research has made impressive progress because of advanced machine learning algorithms, constructing features (or attributes) that can effectively signal fraudulent behaviors remains a challenge. In recent years, a new type of fraud has emerged on peer-to-peer (P2P) lending platforms, where individuals can borrow money from others without a financial intermediary. In these markets, the information asymmetry problem is seriously elevated. Inspired by the fraud triangle theory and its extensions, and using the design science research methodology, we construct five categories of behavioral features directly from P2P lending transaction data, in addition to the baseline features regarding borrowers and loan requests. These behavioral features are intended to capture the fraud capability, integrity, and opportunity of fraudsters based on their loan requests and payment histories, connected peers, bidding process characteristics, and activity sequences. Using datasets from real users on two large P2P lending platforms in China, our evaluation results show that combining these additional features with the baseline features significantly enhances detection performance. This design science research contributes novel knowledge to the financial fraud detection literature and practice. [ABSTRACT FROM AUTHOR]

The aim of this research is to test whether attitudes, subjective norms, behavioral control, pressure and opportunities influence the interest of staff in Sharia Banking to commit fraud. The survey was conducted on a sample of 35 sharia banking staff. The research results show that attitudes and pressure influence the interest of Sharia Banking staff to commit acts of fraud, while Subjective Norms, Behavioral Control, and Opportunity do not influence the interest of Sharia Banking staff to commit acts of fraud. [ABSTRACT FROM AUTHOR]

Prior research documents that managers engage in revenue shifting and expense shifting to report inflated operating performance of firms. This study extends this research in a new direction by investigating the relationship between revenue shifting and expense shifting across the firm life cycle. The study posits and finds that firms during the low life cycle stages (particularly, introductory and growth stage) prefer expense shifting over revenue shifting, whereas firms during the high life cycle stages (particularly, mature and decline stage) prefer revenue shifting over expense shifting for managing earnings, implying that firms choose the shifting tool based on ease, need, and relative advantage of each tool. Our subsequent tests suggest that the effect of expense (revenue) shifting is more pronounced among low (high) life cycle stage firms when they are small (large) and young (old). These results are robust to control for other tools of earnings management, and alternative measures of shifting practices and firm life cycle. The findings aware auditors and analysts of the shifting practices of firms operating at high and low life cycle stages. JEL Classification: M41, M48 [ABSTRACT FROM AUTHOR]

The propensity to cheat is intrinsic to every kind of education or training that requires effort and commitment. Academic dishonesty is a significant issue among secondary and postsecondary students worldwide. The majority of students have been involved in at least one kind of academic dishonesty in the preceding academic year. The fraud triangle was studied to explain student dishonesty. The present research evaluates how much the fraud triangle theory adds to business school students’ dishonesty. Technology as a mediator has also been studied. The research found that, despite their insight into the gravity of most cheating activities, students continued to actively participate in cheating. [ABSTRACT FROM AUTHOR]

Academic misconduct is unethical behavior in academic work. To sustain integrity culture and mitigating unethical conducts among higher education institutions community, the academic misconduct detection must be done at an earlier stage. Thus, this study attempted to provide a new empirical contribution with the analysis of binary classification performances metrics to describe the ability of machine learning in predicting academic misconduct. Four machine learning algorithms have been used namely generalized linear model (GLM), logistic regression (LR), decision tree (DT), and random forest (RF). Beside performances comparison, this paper presents the analysis of academic misconduct factors that were constructed based on demography and fraud triangle theory (FTT). The findings showed that all the four machine learning algorithms have obtained good ability in the prediction models with the accuracy at above 80% and below 20% of the classification errors. Rationalization from the FTT attributes has shown as the most important factor in GLM, LR, and DT. In RF, opportunity of FTT attributes have become the most important. Compared to FTT attributes, demography attributes were not providing much benefits to all the machine learning models but remain applicable at very low weight correlations. [ABSTRACT FROM AUTHOR]

This quantitative study investigates the perceptions of accountants in explaining budget-related fraud behaviour of public servants in developing economies using the elements of the fraud triangle theory. Fraud triangle elements constitute the Pressure, opportunity and rationalization dimensions that cause fraud. This study seeks to extend this theory to budget slack fraud investigation in the public sector to fill an existing gap. It therefore aims to test if indications of fraud based on the concept of fraud triangle can be used to detect public servants' budget slack fraud behaviour in developing countries like The Gambia. The population in this study constituted all accountants in the public and private sector. Convenience sampling technique was used to collect primary data via an online questionnaire instrument containing Likert-style questions with 51% response rate. The Likert-style questions drawn on the concept of fraud triangle analysis helped to realize the study's objectives. The result showed that components of Fraud Triangle analysis, Pressure, Opportunity and Rationalization variables have significant combined linear/predictive effect on BSFB, with the greatest influence coming from Opportunity variable. Moreover, the predictors in a multiple regression model generated 73% variance/prediction strength in budget-related fraud behaviour of which 27% are accounted for by residuals. These findings align with literature and have implication for policy and further research. [ABSTRACT FROM AUTHOR]

The media plays an important role in detecting corporate financial fraud. However, little systematic research exists on the impact of media reports on corporate fraud detection; thus, our understanding of the impact is limited. Therefore, we are committed to determining how the configuration of different media report content systematically detects corporate fraud by logistical regression, grounded theory and qualitative comparative analysis (QCA). First, the media reports are classified into three major categories and 35 subclasses to determine their features through fraud triangle theory and grounded theory. Then, based on a dataset of 110 fraudulent listed companies and 110 matched listed companies from 2010 to 2020, three major features comprising 10 subclasses are identified by the logistical regression method. The causal configurations of the features of media reports that detect corporate fraud are explored using the QCA method. The results show that five particular associations can interpret corporate fraud revelation by meeting the equifinality and asymmetric causality principles. Finally, the combined model is proposed. Through 56 fraudulent listed companies and 56 matched listed companies from 2021 to 2022, the combined model is proven to be most effective in detecting corporate fraud. In summary, we offer theoretical contributions to corporate fraud detection and empirical experiences for corporate managers and regulators. [ABSTRACT FROM AUTHOR]

This paper examines the impact of China's 2018 VAT refund policy on corporate financial fraud, using a difference-in-differences approach. Findings demonstrate that the policy significantly reduces corporate financial fraud, which is confirmed through various robustness tests. The VAT refund policy deters corporate financial fraud by addressing motivational pressures, limiting opportunities, and challenging justifications, effectively targeting the fraud triangle's core elements. The policy's effects are especially strong in high-tech and privately-held firms. The study extends knowledge of VAT policies' roles in corporate decision-making and offers policy guidelines to combat corporate malfeasance. • Based on the fraud triangle theory, evidence shows that the VAT refund policy restricts corporate financial fraud. • VAT refund policy works through the mechanisms of addressing motivational pressures, limiting opportunities, and challenging justifications. • Such effect is more pronounced in high-tech and privately-held firms. [ABSTRACT FROM AUTHOR]

This study examines the determinants of employees' engagement in asset misappropriation within the Tanzanian banking sector, drawing on the Fraud Triangle theory's elements of pressure, opportunity, and rationalization. A sample of 148 bank employees was analysed using a linear regression model. The findings revealed that opportunity emerged as the only significant predictor of asset misappropriation, indicating that when opportunities are perceived to be available, the likelihood of fraudulent behaviour increases and vice versa. However, neither pressure nor rationalization proved to have a significant influence. This research's findings have profound implications for banking institutions and regulatory bodies, highlighting the need for strengthened internal controls and vigilant surveillance mechanisms to constrict perceived opportunities for fraud. Moreover, this study enriches the existing literature by underscoring the context-dependent impact of the Fraud Triangle's components on asset misappropriation, particularly within the Tanzanian banking sector. It emphasizes the need for further research into the complexities of fraudulent behaviour and the development of effective strategies to mitigate it, across different sectors and geographic contexts. [ABSTRACT FROM AUTHOR]

Greenwashing behaviors (GWBs) are positive environmental communications in combination with poor environmental performance. Using fraud triangle theory, this study investigated the effects of three types of factors (pressures, opportunities, and rationalizations) that shape contractor GWBs. Primary data from 586 respondents were analyzed using structural equation modeling (SEM) and fuzzy-set qualitative comparative analysis (fsQCA). The SEM results indicate positive effects for these factors with the exception of isomorphic pressures and reveal the mediating role of rationalization. The fsQCA results present three configurational models that trigger GWBs. Theoretical and managerial implications are provided that shed new light on facilitating environmental sustainability in projects. [ABSTRACT FROM AUTHOR]

The act of fraud has been practiced since ancient times and manifests itself in different ways. The aim of the study is to apply the Beneish score on Romanian firms and to identify which indicators are sensitive to the state of fraud. The sample was selected from the Bucharest Stock Exchange and consists of 66 companies traded on the main market for the years 2016-2021. The collected data were analyzed year-by-year and crosssectional methods (panel data) using manually collected information extracted from financial statements downloaded from the Bucharest Stock Exchange. Based on this data, the Beneish score was calculated and then statistical tests were performed. Using the obtained results from the Beneish Score calculation, we were able to divide the companies into two groups. The obtained scores, clearly underlines the two states: fraud and non-fraud. The ones in the fraud state have a decreased score, while the companies with no likelihood of fraud risk have lower scores. To further investigate our results, we identified sensitive items in both states such as DSRI (Days Sales Receivable Index) and GMI (Gross Margin Index). In conclusion, several theories or hypotheses are offered to explain the underlying motivations for fraud appearance. Romanian companies listed on regulated markets can be classified into risk groups in terms of fraudulent financial statements by applying the Beneish score. The results of the present study are in the interests of the policy makers, management team, business analysist and as well for the general use. [ABSTRACT FROM AUTHOR]

The purpose of this research is to investigate whether the fraud pentagon theory predictors, namely: Pressure, Opportunity, Rationalization, Capability and Arrogance able to explain the probability of financial statement of fraud occurrence in Indonesia. The results show that: only Pressure and Rationalization elements can define the likelihood of financial statement fraud. The Capability and Arrogance proxies proposed in this research are not proven to explain the opportunities for financial statement fraud. This research finding shows that the fraud pentagon theory still needs testing in different contexts.

Fraud committed by employees has become a serious issue as it impacts the reputation of an organisation as well as ruining employees’ morality. Many of the fraud cases previously reported were from the conventional banks and little attention has been given to fraud cases in Islamic banks. This study examines whether Islamic bank employees’ profile may influence them to commit fraud. Specifically, this study aims to examine whether gender, age, position and religiosity would influence them to commit asset misappropriation. Utilising the Fraud Triangle model, this study conducts questionnaire survey to 109 employees in Islamic banks in Malaysia. The results show significant relationship on gender, age, position and religiosity in influencing the bank employees to commit asset misappropriation in the Islamic banks. The findings in this study indicates that higher authority of the Islamic banks need to outline various plans or programs in preventing fraud in their organisations. The findings in this study contributes to the literature and to the practitioners on the potential factors that may influence asset misappropriation.

This study examines the possible factors affecting plagiarism by accounting lecturers in the Special Region of Yogyakarta, a province in Indonesia. 108 completed questionnaires were quantitatively analyzed. The multiple regression analysis reveals that working pressure and unfair competition significantly influence the intention to undertake plagiarism. These results indicate that Fraud Triangle theory partially explains the phenomenon of plagiarism among accounting lecturers. The main implication of this research is that accounting lecturers have overload works in their daily activities so that they do not have enough time to write scientific works professionally. Another implication is the presence of an unfair competition among accounting lecturers so that in order to meet the publication target, plagiarism becomes a way. The important contribution of this paper is the finding regarding the influences of working pressure and unfair competition on plagiarism by accounting lecturers. [ABSTRACT FROM AUTHOR]

While there is no truly accurate method to determine how many organizations are victimized by resume fraud, there are strong indications and incidents that resume embellishments are on the rise and becoming a thorny growing problem. Employees, by virtue of their duty of care and fiduciary loyalty to their employers, should exercise extreme skepticism in verifying the information provided on applicants' resumes. Tips are by far the most common method for exposing resume fakers. Tips emanate from jealousy, resentment, and any other personal disagreements or grudges. Hence, being an academician, with first-hand knowledge of the work of search committees and a certified fraud examiner (CFE), and in an attempt to bring into focus as many red flags of resume embellishments as could be reviewed here as possible, to help employers and search committees members become more effective fraud fighters, I am writing this research to share ideas and tips on breaking into the code of resume padding. [ABSTRACT FROM AUTHOR]

This study attempts to integrate ethical values into the fraud triangle theory in the context of Malaysian banking industry. Primary data were collected through the survey of 108 questionnaires administered to the employees of the top three largest banks in Malaysia. The findings revealed that ethical values were negatively related to employee fraud, and two elements of fraud triangle theory, namely, opportunity and rationalization, were positively related to employee fraud. This implies that high ethical value is crucial to mitigate employee fraud. To minimize employee fraud, the banking industry should reduce opportunities and employee negative rationalization through strong internal control. This study contributes to literature on the occurrences of employee fraud, which is not widely discussed, especially in the context of the banking industry in developing countries.

The credibility of unsupervised online exams is an ongoing concern in higher education. Proctoring, in the form of physical or remote supervision, has been the main mechanism for maintaining academic integrity. However, both forms of proctoring are expensive and inconvenient. Several researchers have examined security mechanisms as a substitute for proctoring and obtained mixed results. This article describes a quasi-experimental study, the main goal of which was to examine the effectiveness of nonbiometric security mechanisms. The security mechanisms were selected based on the taxonomy of cheating reduction techniques rooted in the fraud triangle theory. The security mechanisms were considered effective if the scores were equivalent or lower on the unproctored exams. Two one-sided dependent t tests were used to test for equivalence of scores on two sets of proctored and unproctored exams in face-to-face (N = 704), hybrid (N = 91), and online (N = 55) introductory statistics community college courses. In the first set, the proctored exam was followed by the unproctored exam; in the second set, the order was reversed. In the first set, the scores on proctored and unproctored exams were equivalent in face-to-face and online groups, but students in the hybrid group had significantly lower scores on the unproctored exam. In the second set, the students' scores were lower on the unproctored exam in all groups. The study's results suggest that the used security mechanisms were effective. [ABSTRACT FROM AUTHOR]

This study attempts to integrate ethical values into the fraud triangle theory in the context of Malaysian banking industry. Primary data were collected through the survey of 108 questionnaires administered to the employees of the top three largest banks in Malaysia. The findings revealed that ethical values were negatively related to employee fraud, and two elements of fraud triangle theory, namely, opportunity and rationalization, were positively related to employee fraud. This implies that high ethical value is crucial to mitigate employee fraud. To minimize employee fraud, the banking industry should reduce opportunities and employee negative rationalization through strong internal control. This study contributes to literature on the occurrences of employee fraud, which is not widely discussed, especially in the context of the banking industry in developing countries. [ABSTRACT FROM AUTHOR]

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China has suffered frequent water pollution incidents in recent years, and information disclosure on relevant hazards is often delayed and insufficient. The purpose of this paper is to unearth the latent resistance, and analyze the institutional arrangements and countermeasures. After reviewing representative journal literature about environmental information disclosure, this paper provides a theoretical review based on a comparison of the ontological differences between stakeholder theory and fraud triangle theory. A tentative application of fraud triangle theory as a means of explaining the phenomenon is proposed. Empirical analysis is undertaken to verify the tentative theoretical explanation. Based on news reports from Chinese official news websites, content analysis on longitudinal case evidence of representative water pollution incidents is applied, to contribute to unearthing the mechanism of the latent resistance towards information disclosure. The results show that local government agencies have a dominant position vis a vis information disclosure, but that some important actors rarely participate in information disclosure, which provides a chance for local government agencies’ information disclosure to commit fraud. The phenomenon, its essence, and proposed countermeasures are discussed and explained by referring to recent governmental environmental practices in China. Promising research topics are illuminated, providing enlightenment for future study. [ABSTRACT FROM AUTHOR]