EXPLORING FRAUD TRIANGLE IN UNDERSTANDING ETHICS PRE-CAUTIONARY: A MALAYSIAN STATUTORY BODY

Abstract

Various reports on the involvement of government officials in fraud cases indicate the lacking of ethical systems. This paper explores the possible reasons of fraud occurence in a Malaysian statutory body (MSB) and matches the fraud occurence with the existing theories. This study applied the qualitative approach via integrative literature reviews and interviews with the key informers (KIs) in a MSB. Using content analysis, the pressure of financial or work-related, opportunity and one-self inner rationalization are among the reasons for committing fraud which is consistent with the Fraud Triangle Theory. However, the capacity under the Fraud Diamond Theory was not mentioned by the KIs. KIs believed fraud can be prevented when the inner-self rationalization is founded by the religious spirituality. The understanding of the reasons of fraud triangle may enhance the ethics pre-cautionary actions in the MSB.