This work is a review of financial fraud research and the trends this type of research is currently taking. It will present an examination of the state of research in this field.
Attention will also be paid to the practical applications of financial fraud research. In addition, there is a review of theory in financial fraud research and the role of ethics in this research field. Suggestions for the future direction of financial fraud research will be given.
This work includes a final chapter with selected fraud case studies from the archives of the Federal Bureau of Investigation (FBI), the Internal Revenue Service (IRS), and the Security and Exchange Commission.
Table of Contents
Overview of Financial Fraud Research
Research in Financial Fraud
Practical Applications of Financial Fraud Research
The Theories Underlying Financial Fraud Research
Ethics in financial fraud research
Future directions
Addendum: Selected Fraud Cases
Research Objectives and Themes
This work aims to provide a synthesis of financial fraud research by exploring theoretical frameworks, research methodologies, and the role of ethics in the field. It seeks to address the gap between academic theory and the practical application of fraud detection and deterrence, specifically examining how contingency factors and psychological variables influence fraudulent behavior in corporate environments.
- The evolution and limitations of the Fraud Triangle Theory.
- The impact of contingency factors on financial fraud commission.
- Integration of theory with practical fraud detection applications.
- The role of ethics in research methodology and professional standards.
- Analysis of real-world fraud case studies from FBI, IRS, and SEC archives.
Excerpt from the Book
Overview of Financial Fraud Research
Research in the area of financial fraud has often been something that has morphed from wholly quantitative in nature to purely qualitative in nature. There is a need to approach financial fraud research from a more organized direction and one that can fuse theory with practical application. This text is intended to provide a synthesis of theory, fraud research methods and an ethical prospective on the topic. The text is organized into six primary chapters plus a seventh addendum chapter on actual case studies from the US Federal Bureau of Investigation (FBI), the Security and Exchange Commission (SEC), and the US Internal Revenue Service (IRS) archives. Chapter one provides an overview of what many have called the financial fraud epidemic that has occurred over 15 to 20 years. Chapter two provides a summary of research in financial fraud. Chapter three provides a look at the practical applications of financial fraud research. Chapter four explores theories of financial fraud research. Chapter five examines ethics in financial fraud research. Chapter six addresses future directions for research in financial fraud.
Spicer (2016) asserted that financial fraud has become a global issue from 1995 to the present. There have been many previously high performing enterprises victimized by fraudulent acts of executives and other employees in positions of trust (Bann, 2009). In his seminal work, Donald Cressey (1973) studied the characteristics for people who committed fraud and the common circumstances that lead to their fraudulent acts. The result of Cressey’s (1973) case study was the development of the Fraud Triangle Theory which identifies three aspects contributing to the commission of fraud (a) perceived pressure, (b) perceived opportunity, and (c) rationalization.
Summary of Chapters
Overview of Financial Fraud Research: This chapter synthesizes current trends in financial fraud research, tracing its evolution from quantitative to qualitative methods while introducing the central framework of the Fraud Triangle Theory.
Research in Financial Fraud: This section offers a critical review of five empirical studies that analyze contingency factors and psychological pathways related to corporate fraud.
Practical Applications of Financial Fraud Research: This chapter bridges the gap between academic theories and their real-world application in detecting and deterring financial fraud within corporate structures.
The Theories Underlying Financial Fraud Research: This chapter addresses the theoretical foundations of fraud research, comparing various research paradigms and their contributions to the field.
Ethics in financial fraud research: This section examines the necessity of maintaining ethical standards in research and literature reviews, emphasizing the importance of trust and rigor in scientific inquiry.
Future directions: This chapter explores potential avenues for fraud reform, emphasizing the need for more effective regulations and the importance of forensic accounting training.
Addendum: Selected Fraud Cases: This final section provides illustrative real-world examples of financial fraud from FBI and SEC archives to demonstrate the practical implications of the discussed theories.
Keywords
Financial Fraud, Fraud Triangle Theory, Contingency Factors, Corporate Governance, Internal Controls, Forensic Accounting, Ethical Leadership, Rationalization, Perceived Pressure, Perceived Opportunity, Corporate Psychopathy, Research Methodology, Case Study Analysis, Regulatory Compliance, Fraud Deterrence.
Frequently Asked Questions
What is the primary focus of this book?
The book serves as a review of current research on financial fraud, focusing on the trends in research, the evolution of fraud theories, and the practical application of these theories in detecting and preventing fraudulent activities.
What are the central themes discussed in the research?
The work centers on understanding the factors that lead to the commission of fraud, the integration of theory and practice, the role of ethical leadership, and the psychological and organizational dynamics that contribute to financial crimes.
What is the core objective of the author's research?
The primary goal is to address the gap between theoretical research on financial fraud and its practical application in real-world business settings, particularly through the use of case studies.
What scientific methods are utilized?
The work emphasizes a qualitative research approach, specifically utilizing case study reviews and the synthesis of existing peer-reviewed literature to analyze factors affecting fraudulent behavior.
What topics are covered in the main body?
The main body covers the development of fraud theory (from Cressey's Fraud Triangle to the Fraud Diamond), the influence of psychological factors on perpetrators, the role of internal controls, and the ethical responsibilities of researchers and corporations.
Which keywords characterize this work?
Key terms include Financial Fraud, Fraud Triangle, Contingency Factors, Corporate Governance, Internal Controls, Forensic Accounting, and Ethical Leadership.
How does the author view the Fraud Triangle Theory today?
The author considers it a seminal and important starting point but notes that it is now often viewed as too general, requiring modification through contingency factors such as personal integrity and organizational dynamics.
What is the significance of the Addendum?
The addendum provides real-world, high-profile case studies—including those from the FBI and SEC—to illustrate the failure of internal controls and the necessity of applying theory to prevent similar fraudulent events.
- Citation du texte
- Ronald Spicer (Auteur), 2015, Insights in Financial Fraud Research, Munich, GRIN Verlag, https://www.grin.com/document/451206
