The Effect of Alternative Fraud Model Use on Auditors' Fraud Risk Judgments
Doug Boyle, Todd DeZoort, and Dana Hermanson
Journal of Accounting and Public Policy, Vol. 34, No. 6 (November-December 2015), pp. 578-596
OVERVIEW
Dana Hermanson received the Outstanding Impact Publication award for the 2015 article noted above. Co-author Boyle earned his DBA from Coles College in 2012, and DeZoort served as a DBA Global Scholar. In 2004, Hermanson worked with forensic accountant David Wolfe to introduce a new model of fraud, the “fraud diamond,” which adds a fourth side, capability, to Cressey’s traditional fraud triangle based on pressure, opportunity, and rationalization. The 2015 article provides evidence that auditors using a tool based on the fraud diamond assess risk significantly higher than those using the triangle and proposes an enhanced fraud triangle. According to Google Scholar, the 2004 article has been cited over 2,000 times, and the 2015 paper has over 140 citations. In 2022, Hermanson presented insights from the 2004 and 2015 papers to the two leading US auditing regulators, the American Institute of CPAs and the Public Company Accounting Oversight Board. He uses the fraud diamond and enhanced fraud triangle in his classes and has presented these models to many professional groups. He hopes they can help auditors and others to mitigate fraud.
22 | Outstanding Impact
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