Cressey's Fraud Triangle

In the 1950s Donal Cressey developed the fraud triangle about why people commit fraud. Below is an image of his theory:

Cressey's Fraud Triangle from Ernst & Young (AYB115 - Lecture 2, p17)

Cressey explains that if people are under pressure, coupled with their rationalisation of actions to commit fraud, they will commit fraud if the company gives them the opportunity. Therefore companies must focus of minimising any opportunity of fraud through IT Governance and proper internal controls.

Below is a video which highlights the points of the fraud triangle:

(AYB115 - Lecture 2)

Further Reading - Fraud Triangle:

The fraud triangle and what you can do about it. (2009, 1st Quarter). The Certified Accountant, 37. Retireved from: http://www.lacpa.org.lb/Includes/Images/Docs/TC/TC363.pdf