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Running head: FRAUD THEORY
All fraud cases include situations in which an individual takes advantage of another’s
trust to meet personal obligations that he or she would otherwise not have achieved without use
of covert means. In essence, it involves a branch of trust, and government institutions have been
keen to ensure that they have laws that reduce the chances of individuals engaging in such trust
violations. Additionally, different scholars have been keen to conduct studies exemplifying the
application of fraud theory, which explains reasons for engaging in fraud. The fraud triangle and
diamond theories are some of the most elaborate theories that explain the causes and issues
related to fraud, all of which include the concept of a breach of trust and the existence of some
external pressure for the said individual to engage in fraud (Abdullahi, Mansor, & Nuhu, 2015).
In essence, trust and external pressure are the primary components of the f...
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