The Fraud Triangle
Individual sees a financial need where they can't seek help for
What is motivation?
Accounting fraud can irreparably damage this aspect of a business or individual.
What is reputation?
This technology can instantly protect, monitor, and track changes in financial transactions.
What is Encryption?/What is Blockchain?
Fraudulent activities can significantly impact this aspect of business operations by diverting resources or inflating revenue figures.
What is cash flow?
The CEO of Toshiba during the uncovering of the scandal
Who is Hisao Tanaka?
Exists when there are no internal controls in place to stop the individual.
What is opportunity?
Stakeholders rely on this when making decisions on who to invest in.
What is financial information?
Big data and artificial intelligence can analyze large amounts of incoming material to look for these. Something suspicious and unusual.
What are anomalies?
A shortage of skilled accountants can create opportunities for fraudulent activity, leading to potential errors or misconduct in this area.
What is financial reporting?
The Main Accounting Principle Violated by the accountants and bookkeepers of TOSHIBA, (Pushing Expenses back and Revenue earlier)
What is Matching Principle?
An individual's justification to their own action(s).
What is rationalization?
The fundamental aspect of financial reporting is compromised when accountants falsify records or misrepresent information?
What is the integrity of financial reporting?
Automation in auditing provides auditors with instant insights into financial data and operations, saving them this.
What are man-hours?
Changes in these leads to opportunities in fraudulent activities.
What are tax laws?
Corporate Culture, Incompetent Auditors, Higher Management Negligence and Incompetence.
What are the three factors that lead to the scandal?