Fraud detection using fraud triangle risk factors
Shaio Yan Huang (),
Chi-Chen Lin (),
An-An Chiu () and
David C. Yen ()
Additional contact information
Shaio Yan Huang: National Chung Cheng University
Chi-Chen Lin: National Taipei University of Business
An-An Chiu: Feng Chia University
David C. Yen: SUNY College at Oneonta
Information Systems Frontiers, 14 pages
Abstract:
Abstract The objective of this study is to identify the financial statement fraud factors and rank the relative importance. First, this study reviews the previous studies to identify the possible fraud indicators. Expert questionnaires are distributed next. After questionnaires are collected, Lawshe’s approach is employed to eliminate these factors whose CVR (content validity ratio) values do not meet the criteria. Further, the remaining 32 factors are reviewed by experts to be the measurements suitable for the assessment of fraud detection. The Analytic Hierarchy Process (AHP) is utilized to determine the relative weights of the individual items. The result of AHP shows that the most important dimension is Pressure/Incentive and the least one is Attitude/rationalization. In addition, the top five important measurements are “Poor performance”, “The need for external financing”, “Financial distress”, “Insufficient board oversight”, and “Competition or market saturation”. The result provides a significant advantage to auditors and managers in enhancing the efficiency of fraud detection and critical evaluation.
Keywords: Fraud detection; Fraud triangle; Analytic hierarchy process; AHP; Data mining; Lawshe’s approach (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)
Downloads: (external link)
http://link.springer.com/10.1007/s10796-016-9647-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:spr:infosf:v::y::i::d:10.1007_s10796-016-9647-9
Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10796
DOI: 10.1007/s10796-016-9647-9
Access Statistics for this article
Information Systems Frontiers is currently edited by Ram Ramesh and Raghav Rao
More articles in Information Systems Frontiers from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().