FRAUD TRIANGLE THEORY AND ITS APPLICATION IN RESEARCH OF FINANCIAL STATEMENT FRAUD

Abstract

Financial Statement (FS) fraud is a topic that gains a lot of attention of related parties, due to its negative influence on the whole society. The researchers have tried to explain the fraud behaviors of managers through using social theories or theory of corporate governance, in which Fraud Triangle Theory is the most particular one. Many empirical evidences based on this theory partly explain the financial statement fraud of enterprises. This study aims to highlight and apply the theory in order to explain the financial statement fraud. The study also provides a framework for experimental study based on this theory in Vietnam.

Keywords: Financial statement fraud; Fraud triangle theory; pressure, behavior; opportunity.