Donald R. Cressey s Theory Of The Occupational Offender

Donald R. Cressey was a criminologist who developed the classic model for the occupational offender (Wells, 2013, p. 13). Cressey focused his research on people who started out doing their jobs in an honest way, but at some point, they started embezzling from their employer (Wells, 2013, p. 13). Cressey’s hypothesis was that embezzlers or â€Å"trust violators† had three common characteristics (Wells, 2013, p. 13). These three characteristics would later become known as the â€Å"fraud triangle† (Wells, 2013, p. 13). Frist, the trust violator had to have a â€Å"non-shareable financial problem† (Wells, 2013, p. 13). A non-sharable financial problem was a problem that the embezzler, for whatever reason, wouldn’t share with someone else in order to receive†¦show more content†¦21). The red flags included high personal debts, gambling habits, a refusal to take vacations, and little separation of duties among accountants (Wells, 2013, p. 22). One of Dr. Albrecht’s contributions was the â€Å"fraud scale† which consisted of three components â€Å"situational pressures, perceived opportunities, and personal integrity† (Wells, 2013, p. 23). When personal financial pressures on employees were high, poor internal controls present, and personal integrity low the odds of fraud being committed were high (Wells, 2013, pp. 23-24). I believe that there is a character profile of the typical fraudster. In my view, the most important indicator of fraud is a poor moral compass. My initial view was that a typical fraudster is an entry level or middle-level employee who has access to cash and feels unappreciated. As we have seen, some of the characteristics I’ve identified correlate with other studies previously mentioned. In 2011, Big Four Auditing Firm KPMG published a study that looked at the characteristics of the typical fraudster. Contrary to my initial view, KPMG found that the typical fraudster â€Å"was a senior level employee who had been employed by the company for more than 10 years† (KPMG, 2011). The RTN includes nine geographical regions: (ACFE, 2014, p. 14) 1. Canada 2. United States 3. Latin America and the Caribbean 4. Western Europe 5. Middle East and North Africa 6. Sub-SaharanShow MoreRelatedPrevention And Detection Of Accounting Fraud2577 Words   |  11 Pagesresearch paper will cover descriptions of types and components of fraud. It will offer suggestions as to who would commit fraud and how it would be detected and prevented. The research paper should provide a general overview of the subject in layman s terms. Introduction The Accounts Payable Manager writes himself a check which he then allocates to a fake invoice. The cashier pockets twenty dollars occasionally without ringing in a sale. The owner of the businessRead MoreThe New Fraud Triangle Model3669 Words   |  15 Pagesknowledge about fraud and why it occurs. It explains Cressey’s fraud theory and shows its significance, presents the other fraud models and relates them to Cressey’s model, and proposes a new fraud triangle model that external auditors could consider when assessing the risk of fraud. __________________________________________________________________________________________ Keywords: fraud, fraud triangle, cressey’s fraud theory, fraud models, fraud detection __________________________________Read MoreEssay on The Rich Get Richer and the Poor Get Prison12486 Words   |  50 Pagesmajority of the inmates in our jails and prisons, they make up a proportion that far outstrips their proportion in the population.2 Here, too, the image we see is distorted by the processes of the criminal justice system itself. Edwin Sutherland and Donald Cressey write in their widely used textbook Criminology that Numerous studies have shown that African-Americans are more likely to be arrested, indicted, convicted, and committed to an institution than are whites who commit the same offenses, and many