Identification of Fraud Components and Political Factors Influencing Fraud in Financial Statements

Maryam  Bandanipour; Habibollah  Nakhaei; Zohreh  Hajiha; Karim  Nakhaei

doi:10.61838/kman.ijimob.3.5.14

Authors

Maryam Bandanipour PhD student in accounting, Accounting Department, Birjand Branch, Islamic Azad University, Birjand, Iran Author https://orcid.org/0009-0005-1120-9947
Habibollah Nakhaei Assistant professor of accounting, Birjand Branch, Islamic Azad University, Birjand, Iran Corresponding Author https://orcid.org/0000-0002-0363-8179
Zohreh Hajiha Associate Professor of Accounting Department, Tehran East Branch, Islamic Azad University, Tehran, Iran Author https://orcid.org/0000-0002-3625-2352
Karim Nakhaei Assistant Professor of Accounting Department, Birjand Branch, Islamic Azad University, Birjand, Iran Author https://orcid.org/0000-0001-5663-3200

DOI:

https://doi.org/10.61838/kman.ijimob.3.5.14

Keywords:

Fraud components , Political factors, Financial statements

Abstract

Objective: The purpose of this research was to identify the components of fraud and the political factors affecting fraud in financial statements.

Methodology: The research method was fundamental in objective, qualitative in data type, and Delphi in data collection method. The population consisted of 20 experts from academia and finance, economic experts related to auditing and fraud, senior managers of leading companies listed on the Tehran Stock Exchange, and economic managers and professors. The research tool included targeted non-random interviews. For data analysis, the Delphi method was utilized.

Findings: The findings revealed that the components of fraud and political factors influencing fraud in financial statements include the fraud triangle and diamond (pressure, opportunity, rationalization, and capability) and political factors (individual and organizational).

Conclusion: In conclusion, this study highlights the intricate interplay between individual and organizational political factors and the traditional elements of fraud, providing insights into the mechanisms through which political dynamics influence fraudulent practices in financial reporting. This understanding could guide the development of more effective detection and prevention strategies.