First Name:
Jeanne-Claire
Last Name:
White
Major Department:
Accounting
Thesis Director:
Tracy Reed
Date of Thesis:
May 2011
Throughout the business world, occupational fraud is a constant concern for organizations. It is a complex crime and is often difficult to fully understand. The fraud diamond was created to determine the underlying motivations and opportunities of fraud. The diamond consists of pressure, perceived opportunity, rationalization, and capability. By studying these components, organizations have a better understanding of fraud and can develop techniques to help prevent, detect, and deter fraud. Within the last decade, two major fraud scandals have been uncovered: Enron in 2001 and Satyam in 2009. Both of these fraud cases were perpetrated by upper management and cost millions of dollars. The components of the fraud diamond are found in both cases and explain how the fraud was committed. Overall, the nature of fraud is difficult to fully grasp; however, by studying the components of fraud and applying them to fraud cases, organizations will hopefully decrease fraudulent practices within their organizations.