What are the Triggering Factors for Fraud?

[Suba]

In the world of finance and accounting, irregularities or imbalances in financial records are often found, which can be caused by errors or fraud. Businesspeople must be able to distinguish between errors and fraud. Although the impact of errors and fraud is similar and often found in financial reports, they have crucial differences. Errors are caused by accident and do not occur repeatedly, while fraud is intentional and involves a series of irregularities and illegal acts.

Fraud can be committed by individuals or groups, and in practice, fraud is more difficult to detect than errors.

 

[Augusta]

For someone to commit fraud: pressure (or incentive), opportunity, and rationalization. These factors, when combined, create an environment where individuals are more likely to engage in fraudulent activities.