This course explores concepts and profile of the white collar fraudster, so individuals can take pro-active steps
The fraud triangle is often referred to when studying aspects of white collar crime and fraudulent acts. Two individuals who deserve the most credit for the fraud triangle theory are early criminology researchers Edwin Sutherland and Donald Cressey. Sutherland and Cressey, both criminologists, were professors and researchers teaching criminology in sociology departments.
Sutherland developed the "differential association" theory of why people commit crimes. He believed criminal behavior is learned and not inherited.
The person most associated with developing the fraud triangle was Donald Cressey. Cressey was a co-author with and student of Edwin Sutherland. He defined the fraud problem as a "violation of a position of financial trust that the person originally took in good faith.”
Although Cressey and Sutherland were linked to the concepts embedded in the fraud triangle, neither referred to the term “fraud triangle” or the visual depiction.
Understanding fraud and why it occurs requires a deep understanding of the philosophy and concepts behind each leg of the fraud triangle: pressure, opportunity and rationalization. By understanding these concepts and the profile of the typical white collar fraudster, individuals can begin taking proactive steps towards fraud mitigation.
Field of Study: Specialized Knowledge
Lynn Fountain has over 45 years of experience spanning public accounting, corporate accounting and consulting. 24 years of her experience has been working in the areas of internal and external auditing. She is a subject matter expert in multiple fields including internal audit, ethics, fraud evaluations, Sarbanes-Oxley, enterprise risk management, governance, financial management and compliance. Ms. Fountain has held two Chief Audit Executive positions for international companies. In 2011, as the Chief Audit Executive for an international construction/ engineering firm, she was involved in the active investigation of a joint venture fraud. The investigation included work with the FBI and ultimately led to indictment of the perpetrators and recovery of $13M. Ms. Fountain is currently engaged in her own training and consulting business and is a regular trainer for the AICPA. Ms. Fountain is the author of three separate technical books. “Raise the Red Flag – The Internal Auditors Guide to Fraud Evaluations” was published by the Institute of Internal Auditors Research Foundation. -“Leading The Internal Audit Function” and -“Ethics and The Internal Auditor Political Dilemma” were published by Taylor & Francis In addition Ms. Fountain was a contributing author to the certification program exam for the National Association of Accountants. She also has certificate programs on various on-line platforms. Ms. Fountain has performed as an adjunct instructor for the School of Business for Grantham University and developed the first internal audit curriculum for the School of Business at the University of Kansas. Ms. Fountain obtained her BSBA from Pittsburg State University and her MBA from Washburn University in Kansas. She has her CGMA, CRMA credentials and CPA certificate (non-active).
