Occupational fraud
Definition
The use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employing organisation's resources or assets. Cressey's model was built specifically for this category.
Related terms
- Control environment
- The set of organisational policies, procedures, and cultural attitudes that collectively determine how much opportunity a fraudster has. Weak controls, missing segregation...
- Fraud diamond
- The four-element extension of the fraud triangle proposed by Wolfe and Hermanson (2004), adding capability to pressure, opportunity, and rationalization. Capability focuses...
- Management override
- The capacity of senior management to circumvent controls they themselves designed or approved, a particularly dangerous form of opportunity that audit and...
- Non-shareable financial problem
- Cressey's original phrase for what is now called pressure or incentive. The problem is non-shareable because the person believes they cannot disclose...
- Rationalization
- The internal justification that allows a person to commit fraud while maintaining a self-image as an honest individual. Common forms include 'I...
Explained in
- The Fraud Triangle and Cressey's ModelThe use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employing organisation's resources or assets. Cresse...