2.3. Donald R.Cressey’s Contribution
As one of the brightest students of Sutherland, Cressey revolutionized the findings expressed by Sutherland in a different direction yet theoretically his influential findings are extensively used by fraud examiners. Mr. Cressey’s PhD dissertation concentrated on embezzlers. Cressey instigated his research on 200 inmates at the prison. Cressey was more concerned about the trust violators and not the people who joined the business with an eye for fraudulent activities. Of course, this notion of Cressey is indeed commendable as very less portion of employees join the organization to indulge in fraudulent behavior(Cressey, 1943).He tried to focus on people who had a lot of trust bestowed on them and they broke …show more content…
The Fraud Triangle
In order for fraud to occur, three elements need to be present. There is a pressure on the employee to perpetuate a criminal activity. Then with pressure comes rationalizations and then there is opportunities for criminal act.
2.5.1. The Diagrammatic Approach: the Fraud Triangle Source: (ACFE, 2009)
2.5.1.1. Pressure
Pressure forces a person to commit fraud. Pressure can include almost anything but the major ones include financial constraints or financial needs due to medical reasons. Often this need is non-sharable in the eyes of the fraudster. That is, the person believes, for whatever reason, that their problem must be solved in secret. However, some frauds are instigated without any sorts of pressure. This is just because of the greedy natured people of the society (ACFE, …show more content…
Content
3.1. Cressey’s Final Hypothesis
He stated that trusted persons become trust violators when they considerthat they are having a financial problem that is non-shareable, are aware this problem can be clandestinely resolved by violation of the position of financial trust, and are able to apply to their own conduct in that situation verbalizations which enable them to adjust their conceptions of themselves as trusted persons with their conceptions of themselves as users of the entrusted funds or property.(Cressey, 1953)
3.2. Do most Employees steal under the right circumstances?
The 10-10-80 rule of thumb has come a long way as far as fraud examination is concerned. This rule of thumb in the arena of Fraud investigation is still applied. This thumb rule is based on a precondition that 10 percent of the employees will never steal no matter what the circumstances are. Another 10 percent enter the working field just to instigate criminal offences. The 80 percent of the employees tend to steal under the right circumstances which strongly support the notions expressed by the influential criminologists such as Mr. Cressey and his proponents. (ACFE,
As one of the brightest students of Sutherland, Cressey revolutionized the findings expressed by Sutherland in a different direction yet theoretically his influential findings are extensively used by fraud examiners. Mr. Cressey’s PhD dissertation concentrated on embezzlers. Cressey instigated his research on 200 inmates at the prison. Cressey was more concerned about the trust violators and not the people who joined the business with an eye for fraudulent activities. Of course, this notion of Cressey is indeed commendable as very less portion of employees join the organization to indulge in fraudulent behavior(Cressey, 1943).He tried to focus on people who had a lot of trust bestowed on them and they broke …show more content…
The Fraud Triangle
In order for fraud to occur, three elements need to be present. There is a pressure on the employee to perpetuate a criminal activity. Then with pressure comes rationalizations and then there is opportunities for criminal act.
2.5.1. The Diagrammatic Approach: the Fraud Triangle Source: (ACFE, 2009)
2.5.1.1. Pressure
Pressure forces a person to commit fraud. Pressure can include almost anything but the major ones include financial constraints or financial needs due to medical reasons. Often this need is non-sharable in the eyes of the fraudster. That is, the person believes, for whatever reason, that their problem must be solved in secret. However, some frauds are instigated without any sorts of pressure. This is just because of the greedy natured people of the society (ACFE, …show more content…
Content
3.1. Cressey’s Final Hypothesis
He stated that trusted persons become trust violators when they considerthat they are having a financial problem that is non-shareable, are aware this problem can be clandestinely resolved by violation of the position of financial trust, and are able to apply to their own conduct in that situation verbalizations which enable them to adjust their conceptions of themselves as trusted persons with their conceptions of themselves as users of the entrusted funds or property.(Cressey, 1953)
3.2. Do most Employees steal under the right circumstances?
The 10-10-80 rule of thumb has come a long way as far as fraud examination is concerned. This rule of thumb in the arena of Fraud investigation is still applied. This thumb rule is based on a precondition that 10 percent of the employees will never steal no matter what the circumstances are. Another 10 percent enter the working field just to instigate criminal offences. The 80 percent of the employees tend to steal under the right circumstances which strongly support the notions expressed by the influential criminologists such as Mr. Cressey and his proponents. (ACFE,