The New Fraud Triangle Model

Fraud in corporations is a topic that receives significant and growing attention from regulators, auditors, and the. Increasingly external auditors are being asked to play an important role in helping organizations prevent detect fraud. Detecting fraud is not an easy task and requires thorough knowledge about the nature of fraud, it can be committed and concealed. This paper aims at broadening external auditors’ knowledge about and why it occurs. It explains Cressey’s fraud theory and shows its significance, presents the other fraud and relates them to Cressey’s model, and proposes a new fraud triangle model that external auditors consider when assessing the risk of fraud.