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IN his study of the “fraud triangle” (1953), Donald Cressey considers three dimensions of fraudulent behavior: pressure, opportunity and rationalization. Pressure motivates trusted persons to become trust violators due to the existence of financial problems that cannot be shared, opportunity makes them secretly resolve these problems even if they have to violate the trust placed in them and rationalization allows them to view fraud as justifiable for resolving such problems. Said triangle has been used as a tool for detecting fraud viz. American Institute of Certified Public Accountants (Aicpa, 2002), International Accounting Standards Board (IASB, 2009) and local organizations, among others. In another study, Troy, Smith and Domino (2011) theorize that younger, less functionally experienced chief executive officers and CEOs without business degrees will be more likely to rationalize accounting fraud as an acceptable decision.
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