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207630

The usage of Fraud Hexagon Model to discover fraud in the Financial Statements An Applied Study

Article

Last updated: 04 Jan 2025

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Tags

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Abstract

The research aims to use the Fraud Hexagon Model to improve the comprehension the main elements that cause fraud to occur. Fraud Hexagon Model is the expansion of Pentagon fraud model, fraud diamond and fraud triangle. The fraud Hexagon model adds collusion in addition to the other five existing factors namely pressure, opportunity, rationalization, Capability and External Regulatory. The population of this study was 41 companies recorded on the Egyptian Stock Exchange and have financial lawsuits for the period of 2019-2020. The samples consists of 10 companies were gotten by using a random sampling method. The occurrence of Fraud in the Financial Statement is measured by the Altman Z Score, due to shortage of database to assort companies committing fraud from other companies in Egypt. Data was examined by using logistic regression analysis. The results indicated that the major six element- collusion - plays an essential role in commit fraud. It is become clear that fraud Hexagon model is the most suitable model in detecting fraud, and there are important variances between the influence of all elements of fraud Hexagon model and fraud pentagon model.

DOI

10.21608/jsst.2021.104171.1347

Keywords

collusion, Financial Statement Fraud, The fraud Hexagon model

Authors

First Name

ألاء عبده إبراهيم حسن

Last Name

الکتبي

MiddleName

-

Affiliation

کلية التجارة جامعة بورسعيد

Email

alaaabdouelkotby@gmail.com

City

بورسعيد

Orcid

-

Volume

23

Article Issue

1

Related Issue

28068

Issue Date

2022-01-01

Receive Date

2021-11-03

Publish Date

2022-01-01

Page Start

116

Page End

133

Print ISSN

2090-5327

Online ISSN

2682-3543

Link

https://jsst.journals.ekb.eg/article_207630.html

Detail API

https://jsst.journals.ekb.eg/service?article_code=207630

Order

6

Type

المقالة الأصلية

Type Code

1,048

Publication Type

Journal

Publication Title

مجلة البحوث المالية والتجارية

Publication Link

https://jsst.journals.ekb.eg/

MainTitle

The usage of Fraud Hexagon Model to discover fraud in the Financial Statements An Applied Study

Details

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Article

Created At

22 Jan 2023