Future studies the role of factors determining of managers' fraud through the use of the fraud diamond model

Subject Areas : Investments

Ehsan Saadati ¹ , Shohreh Yazdani ² , Mohammadhamed Khanmohammadi ³ , Davoud Gorjizadeh ⁴

1 - Department of Accounting, Damavand Branch, Islamic Azad University, Damavand, Iran.
2 - Department of Accounting, Damavand Branch, Islamic Azad University, Damavand, Iran.
3 - Department of Accounting, Damavand Branch, Islamic Azad University, Damavand, Iran.
4 - Department of Accounting, Firoozkooh Branch, Islamic Azad University, Firoozkooh, Iran.

Received: 2023-03-14 Accepted : 2023-06-08 Published : 2023-06-22

Keywords: Agency Theory, Future Studies, Fraud Diamond Theory, Fraud prevention,

Abstract :

Purpose: The present study aims to conduct future research of the role of the determinants of managers' fraud, focusing on the diamond model of fraud.Methodology: To measure the types of fraud and indicators related to the diamond model of fraud from the Likert scale questionnaire which contains three parts (demography, types of fraud, and elements of the fraud diamond model) and 74 declarative sentences were used. Furthermore, SmartPLS Software and the structural equation modeling technique with the partial least squares approach were used to test the hypotheses.Findings: The opportunity side is considered as an influential component on different types of fraud. Moreover, the 'capability' side has an effect on managers' fraud through social engineering, misuse of resources (assets), and earning management with opportunistic purposes, and 'rationalization' is the side that influences on the components of non-application of methods in accounting standards by managers and misuse of resources. Additionally, 'pressure' (motivation) is the side that affects the component of fraud management through social engineering. the sides of the fraud diamond model are only efficient when wich is a matter of separation of management and ownership and no effective processes for the supervision of managers.Originality / Value: In the current research, it was noted that the reason for the occurrence of four types of fraud indicators in Iran What was it based on. The added value of this research is that in most of the articles conducted by the researchers, attention was paid to the fraud triangle model.

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