Factors Influencing Fraudulent in Financial Reporting Using Fraud Triangle Theory in Malaysia: A Conceptual Paper

Mohamad Shahril Isahak and Nur Ain Hana Roslan and Nurul Syasha Izzati Abdul Tahrim and Sarah Amalin Zawari and Wan Nur Adlina Mohd Najib and Nelson Lajuni (2023) Factors Influencing Fraudulent in Financial Reporting Using Fraud Triangle Theory in Malaysia: A Conceptual Paper. International Journal of Academic Research in Business and Social Sciences, 13 (6). pp. 1476-1487. ISSN 2222-6990

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Abstract

Through the years, many highly publicised financial reporting frauds have occurred around the world. In each case, misrepresented financial reporting led to huge financial losses and a number of bankruptcies. Therefore, auditors and management are more concerned with fraud in financial reporting as it is more likely to occur, and the amounts involved are huge. This can lead to disturbing effects on the current global economy. Somehow, fraud in financial reporting can be prevented by knowing the factors that can contribute to it. Hence, with the objective of enhancing the understanding of the primary factor that caused fraudulent financial reporting, this conceptual paper aims to discuss the fraud triangle theory. In relation to this, there are three conditions that exist when fraud occurs, which are: (i) pressure, (ii) opportunity, and (iii) rationalization. In addition, this paper also aims to propose a recommendation for eliminating or minimizing the fraud triangle elements in theory.

Item Type:	Article
Keyword:	Fraud Triangle Theory, Fraudulent Financial Reporting, Pressure, Opportunity, Rationalisation
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting H Social Sciences > HF Commerce > HF1-6182 Commerce > HF5001-6182 Business > HF5601-5689 Accounting. Bookkeeping
Department:	FACULTY > Faculty of Business, Economics and Accounting
Depositing User:	SITI AZIZAH BINTI IDRIS -
Date Deposited:	01 Sep 2023 08:43
Last Modified:	01 Sep 2023 08:43
URI:	https://eprints.ums.edu.my/id/eprint/36611

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