NCJ Number
70395
Date Published
1980
Length
55 pages
Annotation
Findings are reported from a literature review designed to develop a checklist of 'red-flags' to aid auditors in detecting management fraud.
Abstract
Research on the characteristics of white-collar offenders shows that they differ significantly from other property offenders on demographic variables and personality traits. They are more like nonoffenders. Studies of patterns of personal honesty indicate that it is both a generalized and specific characteristic. Some persons tend to be generally honest, such that honesty can be measured as a general personality trait. Other individuals tend to be situationally honest; i.e., their honesty is situationally determined by pressures and opportunities to commit fraud. Fifty case studies of fraud were examined in order to identify 'red-flags' related to each incident. 'Red-flags' are placed in three major categories--situational pressure, opportunity to commit fraud, and personality factors. The model suggests that the decision to commit fraud is determined by the interaction of all three categories of forces. From the case study analysis thus far, situational and opportunity factors appear to be more significant in fraudulent behavior than personality factors. The 'red-flags' under each category are listed in checklist form. A bibliography of about 800 citations is provided.