NCJ Number
82796
Date Published
1982
Length
248 pages
Annotation
This book explains the major causes of business fraud and analyzes strategies for uncovering and eliminating management and employee fraud.
Abstract
In addition to presenting information that documents the seriousness and extensiveness of fraud in the United States, this study reviews major theories concerning fraud. The authors conclude that several forces -- situational pressures, opportunities to commit fraud, and personal integrity -- combine to produce a fraudulent act. Factors contributing to management fraud are company financial problems, external economic conditions, and legal difficulties. Management fraud opportunities include related-party transactions, inadequate internal accounting systems, and frequent changes in auditors or legal counsel. The book suggests questions that can be used to detect and prevent employee fraud. Situational pressures that may contribute to employee fraud are inadequate income, gambling, and unreasonable social expectations. Although researchers have not discovered a set of personality traits that distinguish fraud perpetrators, the authors review testing approaches, including the polygraph, psychological instruments, pre-employment interviews, and background checks. The appendixes contain materials on the authors' 3-year research study, a paper comparing fraud perpetrators with other property criminals and college students, and fraud validation tables. Case studies, over 150 references, and an index are provided.