We can formally define fraud as a form of intentional deceit or
a breach of confidence, perpetrated to gain profit or dishonest
advantage. This definition would seem clear. However, the legal
interpretation and the general public's more subjective
interpretation are more often measured in shades of grey.
How do you confirm intent? What's a dishonest advantage? Is
a lie by omission fraud? Determining what falls into the category
of fraudulent activity proves an interesting exercise. The role
that a forensic accountant plays in ascertaining the relevant facts
is as varied as the interpretations of fraud.
As members of the Due Diligence & Forensic Investigation
Group, the psychology of fraud intrigues us. What's more,
understanding the psychology is essential in our training. The
diverse and sometimes subjective boundaries of fraud are not only
relevant in determining who likely may commit a fraudulent act but
equally relevant, if not more so, in identifying potential
