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The Fraud Detection Triangle: A New Framework For Selecting Variables In Fraud Detection Research, Adrian Gepp, Kuldeep Kumar, Sukanto Bhattacharya
The Fraud Detection Triangle: A New Framework For Selecting Variables In Fraud Detection Research, Adrian Gepp, Kuldeep Kumar, Sukanto Bhattacharya
Adrian Gepp
The selection of explanatory (independent) variables is crucial to developing a fraud detection model. However, the selection process in prior financial statement fraud detection studies is not standardized. Furthermore, the categories of variables differ between studies. Consequently, the new Fraud Detection Triangle framework is proposed as an overall theory to assist in guiding the selection of variables for future fraud detection research. This new framework adapts and extends Cressey’s (1953) well-known and widely-used fraud triangle to make it more suited for use in fraud detection research. While the new framework was developed for financial statement fraud detection, it is more …