Homework SourseDiscussion Topic 2 In this unit you have been introduced to
Discussion Topic 2: In this unit, you have been introduced to the most commonly used fraud theory (Fraud Triangle Theory) created by Donald R. Cressey in 1950 while he was working on his doctoral thesis. Select one of the elements. Why do you find this element intriguing? Do you think these elements are relevant in today’s society? Why do you think fraud still exists even after the scandals of Enron and WorldCom?
Solution
The Fraud Triangle Theory created by Donald R. Cressey emphasises on three key elements: Opportunity, Motivation and Rationalization.
I found the element motivation, very intriguiging. This is because according to me motivation makes someone commit fraud. This motivation can be financial as well as non-financial such as drugs.
Yes, these elements are still relevant in today\'s society because these three element are still the major reasons due to which frauds are caused. Fraud still exists even after the scandals of Enron and WorldCom because people still have the motivation and opportunity to commit these frauds. The companies can limit these frauds by limiting the opportunity to commit fraud.
