The Stages Of Team Development Essay - 1609 Words

1)TEAM DEVELOPMENT There are five stages of team development, which are Forming, Storming, Norming, Performing, and Adjourning. In the Forming stage, the team members are mostly positive and polite as they are getting to know one another, this stage may take more time than others because this is the very beginning stage. Storming is the stage where many teams would failed as it always start with the conflicts due to the different working styles and it can occur anytime in the design process, a team have to overcome it in order to reach their goals. For the Norming stage, most of the conflicts are solved and team members trust, respect and appreciate one another, they commitment to team and goals. In the Performing stage, teamwork and cooperation are visible that they could do work without stress. Besides, strengths of each team members is recognized and utilized. The very last stage of team development is Adjourning, in this stage, team mostly completed their goals so the team would finally be disbanded and some people may be difficult to move on because of the close relationship and comfort. (cited from the class powerpoint slides) For our team, I think we had been through some of the stages which are Forming, Norming, Performing and we are now currently in the adjourning stage because we have successfully completed our Xetna tower competition. We spent much time on the Forming stage as our group was quite quiet especially the team manager, which was me, barely talked andShow MoreRelatedTeam Development Stages891 Words   |  4 Pages1.(a) The definition of team development stages are special challenges to a group of people to work together successfully by using each development stage. The team and the organization take action to develop each stage to support the team to be a success and accomplish the mission. (b) The example of each team development stage is Forming, Storming, Norming, Performing and Adjourning stages. The forming stage develops when the team members meet each other at the first meeting and share informationRead MoreThe Stages Of Team Development1915 Words   |  8 PagesEngineering 104 – Midterm 1. Team Development Chris Anderson The five stages of team development are forming, storming, norming, performing and adjourning. The beginning phase of team development is forming. This is when you meet your group members and begin getting to know one another. This is a good time to find similarities between members, which can help members relate to one another. The next phase is called storming. This is where members begin working on things together. People may push eachRead MoreThe Stages Of Team Development2153 Words   |  9 PagesDiscuss the stages of team development. Address the process, problems, and level of productivity of each. †¢ Forming, storming, norming, and performing are the stages in team development. Forming is basically when the team gets to know each other, there is not much direction at this stage, and little work is accomplished. Storming is the second stage, the project objective and scope is clearer now. Team members start doing their assigned tasks. Conflict and tensions can happen at this stage, and aRead MoreThe Five Stages Of Team Development800 Words   |  4 Pagesdefinition Why is teamwork essential? Five Stages of Team Development In 1965, a professor of psychology at the Ohio State University, Bruce Tuckman propose the five stages of group development (Andersen Bolt, 2011, p. 161). Tuckman strongly suggest the norm order for team to grow as one coordinated group. Teamwork plays a fundamental role in providing a high quality service and achieving accomplishments. Most teams usually go through five stages of development in order for them to successfully meetRead MoreThe Team Development Stages Of The Elected Team Leader844 Words   |  4 Pages In the case 7, the elected team leader, Christine, was worried that her group will not be able to do on the assigned project, since one member of the group did not fully complete the work (Schermerhorn, Osborn, Uhl-Bien, Hunt, 2012). In my opinion, Christine did not understand the team development stages very well, thus she lost the control over her group. According to Shermerhorn et al. (2012), there are 5 team development stages that each newly created team goes through: forming, storming normingRead MoreThe Team s Four Stages Of Team Development969 Words   |  4 Pagesthe good team would be around 4-6 people and with different roles, members could outperform their potential to the maximum point (Mu llins Christy, 2010). By being the last coordinator, I could see the overview roles of particular person in the team clearly and by this it could enhance my knowledge and my future career as well. In the following essay, the essay will divide four parts which starts from informing of the group experience within the module, description of the team’s four stages of teamRead MoreTuckman s Stages Of Group Development Model1287 Words   |  6 PagesA Study on Tuckman’s Stages of Group Development Model 1. Introduction Over the past two decades, it seems that teamwork has become increasingly important and more companies have formed different teams and groups for various purposes (Samson Daft, 2012). It is proved that good teams can be highly productive, however, not every team is successful (Samson Daft, 2012). Forming a team can be time consuming and there are many problems related to teamwork, for example, social loafing might reduce theRead MoreMgmt 591999 Words   |  4 PagesPART I – Group Development First, here is a summary of the development stages of a team. In the forming stage, team members come togetherand form initial impressions. They socialize in order to get to know each other and bond with other team members. In the storming stage, team members experience hostility and infighting over tasks and how the team works. In the norming stage, team members start to come together and realize what needs to be accomplished. In the performing stage, team members areRead MoreAnalysis Of Noclue Consultants1548 Words   |  7 PagesAnalysis of NOCLUE Consultants Making a transition from a hierarchical organization to a self-directed team is not an easy task. NOCLUE has been operating with teams for 2 years and the structure has not been simple, nor easy. Proper planning preparation and education is vital to make motivated, self-directed work teams be successful. Identifying the problems, developing solutions and making recommendations are crucial the organization to perform at the highest level. NOCLUE held a meeting to discussRead MoreTeams Are Essential To Success In Both Business And Many1660 Words   |  7 PagesTeams are essential to success in both business and many varied aspects of our personal and professional life. Proper team development is critical to ensuring that high performance teams, and understanding the process surrounding team development is critical for managers and leaders. In this essay, I will discuss the team development process by examining the five stages of team development, and provide personal examples of ea ch of the stages with advantages and disadvantages in my personal experiences

Tourism Marketing Analysis at Wrest Park Gardens Free Essays

Introduction Wrest Park is one of the most important Gardens in England. The natural landscape and statues was built during the late 18th century. Wrest Park’s formal gardens provide a fascinating history of gardening styles of 150 years old and inspired by the great gardens of Versailles in England. We will write a custom essay sample on Tourism Marketing Analysis at Wrest Park Gardens or any similar topic only for you Order Now The gardens are overlooked by a stylish French-style 18th century mansion and contain amazing garden buildings. Visitors looking for an unusual day out will find Wrest Park a wonderful place to explore in the company of our audio tour. The main Theme in this Wrest part is should be implements are market segmentation, targeting and positioning and marketing communications including their Internet presence to capture park atmosphere to the people and improve the continuous visitor to the park for a day. Wrest park has following the different strategy to adopt the visitor Like Event program, Demonstration about the park and all so the beauty wrest park Tourism marketing communication In the Wrest Park the important aspect is the marketing mix is a traditional way to understand marketing garden in general. The marketing practitioners consider the Mix as the toolkit of operation of marketing segmentation, target and positioning and marketing communication for the operational planning in the park. The exact role for the Wrest Park to contribute the Mix to the success of commercial organizations is very limited; the several studies confirm that the 4Ps Mix is indeed the trusted conceptual platform of practitioners dealing with tactical/operational marketing issues. The marketing mix has been defined as a mixture of controllable marketing variables that the firm uses in order to pursue the marketing mix have been adapted by many scholars and marketing professional, also within the tourism industry, in a number of forms. Firms marketing strategies use marketing mix variables in order to plan an operational marketing plan are used in the wrest park in different aspects are segmenting the group of peoples and positioning the park according to their age group, Gender. The wrest park has the competitive environment with other parks that bring the Targeting in the Tourism Market. And the tourism marketing has the customer demands and competitors? strategies to capture the segmentation, Positioning and targeting the people for the park and changing The Traditional marketing P’s as product, place, and promotion. In the wrest park has the multisensory tourism marketing communication has use the term inter medial marketing to the people to understand the tourism market to have the interactive with the peoples in the around areas. The Wrest Park that provides the marketing to visitors is only part of the job. And the park service marketing must also incorporate internal marketing, Segment marketing and Target marketing. The resources should be allocated to communicating the park mission and values to all members of staff to ensure they share the philosophy of service excellence and visitor satisfaction. The national is the more successful regional parks, in particular, developing longer-term relationships between the key focus for marketing. Segment marketing programmers are increasingly being used by park to diversify from their traditional audiences. They are employing audience development and product diversification, building unpaid assistant and supporters to offering loyalty incentives and demonstrating their relevance to their communities through wider cultural, social and economic initiatives. Segmentation and targeting marketing relationship often overlap the park, particularly in the public sector form collaborative partnerships or to contract out some of their ancillary services. The park’s perspective this integrated and holistic marketing strategy approach should ensure that the park brand maintains its qualities, image and reputation; the park is best placed to achieve its mission, and above all, visitors receive a quality experience. Multiple senses in marketing through Segmentation, positioning and also target the tourism Marketing In the wrest park, are using to communicate with the public by the Marketing communication that also defined by the new media techniques as the Tourism Marketing for its procedures. With the help of tourism market communication the park association has providing the customers services and the consumer behavioral culture. The wrest park should have to fulfill the public perception of service quality and future behavioral, so the next time the peoples will have the intention to visit the park again, this bring the positioning for the tourism marketing. The wrest park have the different process of senses to depends on age, gender, cultural background and their Behavioral experience about the nature, that the peoples expect from the wrest park to provide to visitor to the wrest park, the that shows the Targeting the visitor in the tourism segment for the Wrest Park. In the Wrest Park Market segmentation are correctly using to understanding the needs of customers expectation, and Park authorities will decide between one offer and another. Between the customers who have shared their experience with the other peoples will be similar with their criteria. The Park should able to determine the groups of customers have been comfortable with their service should fully satisfy their need and wants of the customer. The primary objective of the park segmentation should have proper procedures and they should have the analytical aim to satisfy the customers. In the Wrest Park they should creates and maintains a product mix that specifically that fits the needs and preferences of the parks activities. The Wrest Park should have the proper marketing procedures that can be divided into segments that relate the contemporary and traditional. The Park should choose to target the entire customer expectation service and pricing strategy that should accepted by all the customers and also the Tourism visitor to the park. And the Park should have the target market segment for providing the service to the tourism peoples that gives the entire market popularity between the efficient tools for the park should have the promotion between the income and gaining the benefits to the wrest park authorities. The wrest park haves the greater market share between locals peoples and tourism peoples from other countries that gives the segmentation that the Wrest park has carefully directing the marketing plan that reaches to the right people and the right opportunities that park has to capture park visitor. The Park authorities should have the well planned resources that they can concentrated on their service and package that are offers the customers to visit again and again to the park. In the Wrest park there are marking the restoration of new facilities for the visitor in the formal gardens. The gardens have been completely lost or simplified to make them easier to maintain for the workers and also capturing t he marketing between the tourist visitors. And the park has Targeting the tourist visitor by providing the facilities like a new cafe, new shop and plant centre and a new play area for both young and older children. There will also be space to hold events and a new events programme is created there to targeting the different segment of Gender, Age and Size of the family and looking the Geography factor to attract the visitor for the park. In the park they are marketing the facilities to the new visitor for the Wrest park by showing the rooms will open and the house with new exhibitions telling the story of the de Grey family who lived at Wrest Park and how they created the gardens. Historical images are showing to Visitor and the rooms are well furnished and creating good atmosphere for the visitor that bring the Marketing about their product, quality and service to the tourism visitor. The Wrest Park has also opening the Countess’s Sitting Room and this will be the only furnished room in the mansion. Visitors will be able to enjoy the view through to the conservatory and the walled garden just as the Henrietta, Countess de Grey did. Outside, the garden buildings will also have interpretation and a new guidebook, family trail and audio guides are being created. There will also be a selection of activity backpacks for children to borrow with all sorts of games and activities to help them explore and learn about Wrest Park. Conclusion Thus the Wrest Park has the appropriate and effective segmentation, Targeting and positioning the marketing activities are likely to be mediocre at best. The tourism sector has traditionally lagged behind the Park in utilizing the concept of segmentation in marketing decision making, there is evidence to suggest that increasingly better market selection in the Wrest Park on the basis of resource allocations decisions are made for developing the Park strategic level according to current trends. The Wrest Park has too many destinations, attractions and tourism organizations, that they are using well, but outdated and unsophisticated segmentation bases to define their markets. The Park has clearly have an improvement on the traditional, simplistic segmentation bases and can provide more refined visitor profiles in the fact they were initially designed for servicing the visitor, that means they are doing their yield with multi-dimensional benefits of the tourism and Leisure values . Ultimately are decisions are taken in the park to segmenting the visitor market and they have eligible to employ will be dependent upon the scope of the destination’s market planning needs and resources and expertise. The Wrest Park should remember about the tourism to understanding and they should have the distinct and homogenous needs of different visitor that they based on their motivations and attitudes that will allow the destination or attraction to the visitor in the Wrest parks. The Wrest Park has most successful tourist destinations have undertaken a detailed segmentation, Targeting and positioning the analysis about the tourism marketing. The Park have the targeted those segments that closely matched their strengths before designing a value-added composite visitor experience the all aspects have been extended with marketing mix are integrated with the needs of the selected target segments of the Park visitors. REFERENCE 1. Armstrong, G. Kotler, P. (1999). Marketing and Introduction.Prentice Hall. 2. Baker, J., Grewal, D. and Parasuraman, A. (1994). The Influence of Store Environment on Quality Inferences and Store Image. Journal of the Academy of Marketing Science, Vol. 3.Bitner, M. J. (1992), Services capes: The Impact of Physical Surroundings on Customers and Employees, Journal of Marketing, Vol. 56, p. 57-71. 4. Bosmans, A. (2006). Scents and sensibility: When do (in) congruent ambient scents influence product evaluationsJournal of Marketing, Vol. 70(3): 32-43. 5. Coviello. N.E. et al. (2000). Investigation of marketing practice by firm size, Journal of Business Venturing, Vol. 15: 523-545 6. Davies, B. Ward, P. 2002. Managing Retail Consumption. Wiley : London EURO Rscg –tutkimus (2004). Viestinnan ilmiot Gronroos, C. (1994). 7. Shift in Marketing†, Management Decision 32/2, MCB University Press Gronroos, C. (2000). 8. Hirsch, A.R. (1995). Effects of Ambient Odors on Slot Machine Usage in a Las Vegas Casino, Psychology and Marketing, Vol. 12 (7): 585-94. 9. Hoffman, K.D. and Turley, L.W. (2002). Atmospherics, service encounters and consumer decisions making. Vol. 10, Nr. 3, p. 33-46. 10. Kauppalehti. (2007) Matkamyynti menee nettiin, 14th May, 2007.Keillor, B.D., Hule, G., Tomas, M. and Kandemir, D. (2003). A study of the Service Encounter in Eight Countries, Journal of International Marketing, Vol. 12, Nr. 1: 9-35. 11. Kennedy, M. (2008). Brand Strategy. London: Jun 9, 2008:34 Kotler, P. (1984). Marketing Management: Investigation, Planning, and organize, Prentice-Hall 12. Kuutti, H. (2006). Uusi mediasanasto. Jyvaskyla: Atena kustannus Oy. 13. Lindstrom, M. Kotler, P. (2005). Brand senses build powerful brands through touch, Taste, smell, sight, and sound. New York: 14. Lindstrom, M. 2005. Brand Sense, Build Powerful Brands through Touch, Taste, Smell, Sight and Sound. Free Press. 15. Lindstrom, M. 2009. Buyology: Truth and Lies about Why We Buy. Arrow Books Ltd. How to cite Tourism Marketing Analysis at Wrest Park Gardens, Essay examples

The New Fraud Triangle Model free essay sample

Fraud in corporations is a topic that receives significant and growing attention from regulators, auditors, and the public. Increasingly external auditors are being asked to play an important role in helping organizations prevent and detect fraud. Detecting fraud is not an easy task and requires thorough knowledge about the nature of fraud, how it can be committed and concealed. This paper aims at broadening external auditors’ knowledge about fraud and why it occurs. It explains Cressey’s fraud theory and shows its significance, presents the other fraud models and relates them to Cressey’s model, and proposes a new fraud triangle model that external auditors could consider when assessing the risk of fraud. __________________________________________________________________________________________ Keywords: fraud, fraud triangle, cressey’s fraud theory, fraud models, fraud detection _____________________________________________________________________________ _____________ INTRODUCTION â€Å"Trust violators when they conceive of themselves as Corporate fraud is a topic that has received having a financial problem which is non-shareable, significant and growing attention from regulators, have knowledge or awareness that this problem can auditors, and the public. External auditors are be secretly resolved by violation of the position of increasingly being asked to play an important role in financial trust, and are able to apply to their own helping organizations prevent and detect fraud. conduct in that situation verbalisations which enable Detecting fraud is not an easy task and requires them to adjust their conceptions of themselves as thorough knowledge about the nature of fraud, why it trusted persons with their conceptions of themselves is committed, and how it can be committed and as users of the entrusted funds or property† (page concealed. Cressey’s fraud theory explained why 742). The three factors were non-shareable financial trust violators commit fraud and was widely used by problem, opportunity to commit the trust violation, regulators, professionals, and academics. This work and rationalisation by the trust violator. When it has been conceptualised as â€Å"the fraud triangle†. comes to non-shareable financial problem, Cressey However, critics of the fraud triangle argued that it stated â€Å"[p]ersons become trust violators when they cannot help alone in explaining fraud because two conceive of themselves as having incurred financial factors cannot be observed (rationalisation and obligations which are considered as non-sociallypressure), and other important factors, like sanctionable and which, consequently, must be capabilities of the fraudsters, are ignored. satisfied by a private or secret means† (page 741). Hence, in the current paper, Cressey’s fraud theory is explained and its significance is highlighted. The paper also assesses the fraud triangle in light of other fraud models, and proposes a new fraud triangle model that should be considered by external auditors in assessing fraud risk. He also mentioned that perceived opportunity arises when the fraudster sees a way to use their position of trust to solve the financial problem, knowing they are unlikely to be caught. As for rationalisation, Cressey believed that most fraudsters are first-time offenders with no criminal record. They see themselves as ordinary, honest people who are caught in a bad situation. This enables them justify the crime to themselves in a way that makes it acceptable or justifiable. LITERATURE REVIEW Why people commit fraud was first examined by Donald Cressey, a criminologist, in 1950. His research was about what drives people to violate trust. He interviewed 250 criminals over a period of 5 months whose behaviour met two criteria: (1) the person must have accepted a position of trust in good faith, and (2) he must have violated the trust. He found that three factors must be present for a person to violate trust and was able to conclude that: Cressey found that: â€Å"In the interviews, many trust violators expressed the idea that they knew the behaviour to be illegal and wrong at all times and that they merely kidded themselves into thinking that it was not illegal† (page 741). 191 Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 3(3):191-195 (ISSN:2141-7024) Over the years, Cressey’s hypothesis has become well known as â€Å"the fraud triangle† as shown in Figure 1 below. The first side of the fraud triangle represents a pressure or motive to commit the fraudulent act, the second side represents a perceived opportunity, and the third side stands for rationalisation (Wells 2011). Pressure Opportunity Rationalization Figure 1: Fraud Triangle Source: Wells, J. T. , 2005. Principles of fraud examination. Hoboken, New York: John Wiley and Sons In 1953, Cressey published his research in a book called â€Å"Other People’s Money†. He divided the non-sharable financial problems into six categories: difficulty in paying back debts, problems resulting from personal failure, business reversals (uncontrollable business failures such as inflation or recession), physical isolation (trust violator is isolated from people who can help him), status gaining (living beyond one’s means, and employer-employee relations (employer’s unfair treatment). Researchers in the audit literature defined differently the components of the fraud triangle and gave different examples for each. For instance, Lister (2007, p. 63) defined the pressure/motive to commit fraud as â€Å"the source of heat for the fire† but he believed the presence of these pressures in someone’s life does not mean he or she will commit fraud. He also added there are three types of motivation or pressure: Personal pressure to pay for lifestyle, employment pressure from continuous compensation structures, or management’s financial interest, and external pressure such as threats to the business financial stability, financier covenants, and market expectations. Lister saw opportunity, which is the second side of the fraud triangle, as â€Å"the fuel that keeps the fire going† and he believed even if a person has a motive, he or she cannot perpetrate a fraud without being given an opportunity. He also gave some examples of opportunities that can lead to fraud like high turnover of management in key roles, lack of segregation of duties, and complex transactions or organizational structures. As for the third component of the fraud triangle, rationalization, Lister defined it as â€Å"the oxygen that keeps the fire burning†. He mentioned that although auditors may not be able to assess the personal value systems of each individual in the organization, they can assess the corporate culture. pressures or corporate pressures on the individual. The motive to commit fraud may be driven by the pressures influencing the individual, by rationalization, or by sheer opportunity. He believed a person’s position in the organisation contribute to the opportunity to commit fraud. He also believed there is a direct correlation between opportunity to commit fraud and the ability to conceal the fraud. Thus, understanding the opportunity for fraud to occur allows auditors to identify, which fraud schemes an individual can commit, and how fraud risks occur when the controls do not operate as intended by management. Albrecht et al. (2008, 2010), however, mentioned pressure/motive can be financial or non-financial and they gave examples of perceived financial pressures that can motivate fraud like; personal financial losses, falling sales, inability to compete with other companies, greed, living beyond one’s means, personal debt, poor credit, the need to meet shortterm credit crises, inability to meet financial forecasts, and unexpected financial needs. They also gave examples of non-financial pressure, such as; the need to report results better than actual performance, frustration with work, or even a challenge to beat the system. They believed that even with very strong perceived pressures, executives who believe they will be caught and punished rarely commit fraud. They also mentioned some examples of rationalizations that executives can use to commit fraud, like; â€Å"we need to keep the stock price high†, all companies use aggressive accounting practices, or it is for the good of the company. As for perceived opportunities to commit fraud examples include; a weak board of directors, a lack of or circumvention of controls that prevent/detect fraudulent behavior, failure to discipline fraud perpetrators, lack of access to information, and the lack of an audit trail. Murdock (2008) also argued that pressure can be a financial pressure, non financial, or political and social pressure. Non-financial pressure can be derived from a lack of personal discipline or other weaknesses such as gambling habit, drug addiction. While, political and social pressure occurs when people feel they cannot appear to fail due to their status or reputation. However, Rae and Subramaniam (2008), saw pressure relates to employees motivation to commit fraud as a result of greed or personal financial pressure, and opportunity refers to a weakness in the system where the employee has the power or ability to exploit, making fraud possible, while rationalisation as a justification of fraudulent behavior as a result of an employee’s lack of personal integrity, or other moral reasoning. It can be concluded from the above definitions of motives/pressures that motives were classified differently. Some researchers classified them as On the other hand, Vona (2008) believed the motive to commit fraud is often associated with personal 192 Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 3(3):191-195 (ISSN:2141-7024) personal, employment, or external pressure, while others classified them as financial and non-financial pressures. However, it can be noticed that both classifications are some-how related. For instance, personal pressure can come from both financial and non-financial pressure. A personal financial pressure in this case could be gambling addiction or a sudden financial need, while a personal non-financial pressure can be lack of personal discipline or greed. By the same token, employment pressure and external pressure can come from either financial or non-financial pressure. This link can be illustrated as shown in Figure 2 below. Figure 2: Classifications of Pressure/Motive Cressey’s fraud theory, normally known as the fraud triangle theory, was widely supported and used by audit professionals and standards’ setters as a tool for detecting fraud. For instance, in 1987, the Commission of the Treadway Committee reviewed both alleged and proven instances of fraudulent financial reporting and issued a report that supports Cressey’s findings. Results revealed that: â€Å"Fraudulent financial reporting usually occurs as the result of certain environmental, institutional, or individual forces and opportunities. These forces and opportunities add pressures and incentives that encourage individuals and companies to engage in fraudulent financial reporting and are present to some degree in all companies. If the right, combustible mixture of forces and opportunities is present, financial reporting may occur† (1987, p. 23). In 2002, SAS No. 99 supported the use of Cressey’s fraud triangle by mentioning that: â€Å"Three conditions generally are present when fraud occurs. First, management or other employees have an incentive or are under pressure, which provides a reason to commit fraud. Second, circumstances exist—for example, the absence of controls, ineffective controls, or the ability of management to override controls—that provide an opportunity for a fraud to be perpetrated. Third, those involved are able to rationalize committing a fraudulent act. Some individuals possess an attitude, character, or set of ethical values that allow them to knowingly and intentionally commit a dishonest act. However, even otherwise honest individuals can commit fraud in an environment that imposes sufficient pressure on them. The greater the incentive or pressure, the more likely an individual will be able to rationalize the acceptability of committing fraud† (AU316. 06, Paragraph . 07). The standard required the audit team members to discuss the susceptibility of the entity’s financial statements to material misstatement due to fraud, and urged them to consider both internal and external factors affecting the entity that might create pressures for management and others to commit fraud, provide the opportunity for fraud to be committed, and indicate an environment that enables management to rationalize committing fraud (AU316. 13, Paragraph 15). In addition, in 2009, the International Auditing Standards Board issued a revised version of International Standard on Auditing 240 (ISA 240): The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements which stated that â€Å"Fraud, whether fraudulent financial reporting or misappropriation of assets, involves incentive or pressure to commit fraud, a perceived opportunity to do so and some rationalization of the act† (Ref: Para. 3). The standard also provided examples for the three fraud risk factors. For example, Incentive or pressure to commit fraudulent financial reporting may exist when management is under pressure, from sources outside or inside the entity, to achieve an expected (and perhaps unrealistic) earnings target or financial outcome. A perceived opportunity to commit fraud may exist when the trust violator is in a position of trust or has knowledge of specific deficiencies in internal control. The standard also mentioned that individuals may be able to rationalise committing a fraudulent act. ISA 240 also required audit team members to discuss the susceptibility of the entity to fraud and urged them to consider external and internal factors affecting the entity that may create an incentive or pressure for management or others to commit fraud, provide the opportunity for fraud to be perpetrated, and indicate a culture or environment that enables management or others to rationalize committing fraud (A11). Although Cressey’s fraud triangle was supported by audit regulators, critics (Albrecht et al. 1984, Wolfe and Hermanson 2004, Kranacher, et al. in 2010, Dorminey et al. 2010) argued that the model alone is an inadequate tool for deterring, preventing, and detecting fraud. Albrecht et al (1984) introduced the â€Å"Fraud Scale Model† as an alternative for the 193 Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 3(3):191-195 (ISSN:2141-7024) fraud triangle model. The fraud scale includes personal integrity instead of rationalisation and it is particularly applicable to financial reporting fraud where sources of pressure (e. g. analysts’ forecasts, managements’ earnings guidance, a history of sales and earnings growth) are more observable. They defined personal integrity as â€Å"the personal code of ethical behaviour each person adopts† (page 18). Personal integrity can be an observable through observing both a person’s decisions as well as the decision making process. That person’s commitment to ethical decision making can be observed and this can help in assessing integrity and thus the likelihood of an individual committing fraud. Their research was conducted by performing an analysis of 212 frauds in the early 1980s to determine the motivations of the perpetrators of occupational frauds and abuses. They also collected demographics and background information on the frauds through questionnaires that were distributed to 212 internal auditors of companies that had experienced frauds and classified motivations to commit financial reporting fraud into nine different types which are similar to those of Cressey’s non-sharable financial problems: living beyond their means, an overwhelming desire for personal gain, high personal debt, a close association with customers, feeling pay was not commensurate with responsibility, a wheeler-dealer attitude, strong challenge to beat the system, excessive gambling habits, and undue family or peer’s pressure. They also examined comprehensive data sources to assemble a complete list of pressure, opportunity, and integrity variables, resulting in a collection of 82 possible red flags of occupational fraud and abuse. out of it easily, and (4) capability to deal with the stress created within an otherwise good person when she commits bad acts. Another model called â€Å"MICE† was suggested by Kranacher, et al. in 2010 (as cited in Dorminey et al. , 2010). In this model they suggested that motivation of fraud perpetrators, which is one of the sides in the fraud triangle, may be more appropriately expanded and identified with the acronym: MICE that stands for: Money, ideology, coercion, and ego. Ideological motivators justify the means where they can steal money or participate in a fraud act to achieve some perceived greater good that is consistent with their beliefs (ideology). Coercion occurs when individuals may be unwillingly pulled into a fraud scheme, but those individuals can turn into whistleblowers. Ego can also be a motive for fraud, where sometimes people don’t like to lose their reputation or position of power in front of their society or families. This social pressure can be a motive to commit fraudulent act just to keep their ego. In addition, Dorminey, et al. (2010) argued that the model cannot solve the fraud problem alone because two sides of the fraud triangle, pressure and rationalization, cannot be easily observed. In fact, it is important for auditors to consider all fraud models to better understand why fraud is committed. Hence, the above models should all be regarded as an extension to Cressey’s fraud triangle model and should be integrated in one model that includes motivation, opportunity, integrity, and fraudster’s capabilities as shown in figure 4 below. In 2004, Wolfe and Hermanson introduced the â€Å"Fraud Diamond Model† as shown in figure 3 below, where they presented another side that extends the fraud triangle which is â€Å"the fraudster’s capabilities†. Incentive Rationalization Opportunity Capability Figure 3: The Fraud Diamond Figure 4: The New Fraud Triangle Model Source: Wolfe, D. T. and Hermanson, D. R. (2004). â€Å"The fraud diamond: Considering the four elements of fraud†, The CPA Journal, December, p. 4 CONCLUSION The current paper aims at broadening external auditors’ knowledge about fraud and why it occurs. It explains Cressey’s fraud triangle model and shows its significance, presents the other fraud models and relates it to Cressey’s model, and proposes a new fraud triangle model that external auditors should consider when assessing the risk of fraud. A thorough literature review was undertaken to achieve the paper’s aim. The secondary data used in this paper was obtained from different databases like Ebscohost, Business Search Premier, Academic Search Premier, Emerlad, Sciencedirect, and Jstor. Wolfe and Hermanson believed many frauds would not have occurred without the right person with the right capabilities implementing the details of the fraud. They also suggested four observable traits for committing fraud; (1) Authoritative position or function within the organization, (2) capacity to understand and exploit accounting systems and internal control weaknesses, (3) confidence that she/he will not be detected or if caught she/he will get 194 Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 3(3):191-195 (ISSN:2141-7024) Reviewing the literature showed that researchers classified the motive side of the fraud triangle differently. Some researchers classified them as personal, employment, or external pressure, while others classified them as financial and non-financial pressures. However, it can be noticed that both classifications are some-how related. For instance, personal pressure can come from both financial and non-financial pressure. A personal financial pressure in this case could be gambling addiction or a sudden financial need, while a personal non-financial pressure can be lack of personal discipline or greed. By the same token, employment pressure and external pressure can come from either financial or non-financial pressure. Thus, external auditors have to keep in mind that pressure/motive to commit fraud can be either a personal pressure, employment pressure, or external pressure, and each of these types of pressures can also happen because of a financial pressure or a non financial pressure. They also need to understand the opportunity for fraud to help them in identifying which fraud schemes an individual can commit and how fraud risks occur when there is an ineffective or missing internal control. Albrecht, W. S. , Albrecht, C. , and Albrecht, C. C. (2008). â€Å"Current trends in fraud and its detection†, Information Security Journal: A global perspective, Vol. 17, pp. 1-32 Retrieved from www. ebscohost. com Albrecht, C. , Turnbull, C. , Zhang, Y. and Skousen, C. J. (2010). â€Å"The relationship between South Korean chaebols and fraud†. Managerial Auditing Journal, 33(3), pp. 1-25. Retrieved from www. emerald. com Auditing Standards Board. (2002). Statement on Auditing Standards No. 99: Consideration of Fraud in a Financial Statement Audit. Cressey, D. R. (1950). â€Å"The criminal violation of financial trust†. American Sociological Review, 15 (6), pp. 738-743, December, pp. 1-15. Retrieved from www. JSTOR. org Cressey, D. R. (1953). Other People’s Money. Montclair, NJ: Patterson Smith, pp. 1-300 Dorminey, J. , Fleming, S. , Kranacher, M. , and Riley, R. (2011). â€Å"The evolution of fraud theory†. American Accounting Association Annual Meeting, Denver, August, pp. 1-58. Although Cressey’s fraud triangle was supported and used by audit regulators (ASB and IAASB), critics argued that the model alone is an inadequate tool for deterring, preventing, and detecting fraud. This is because two sides of the fraud triangle (pressure and rationalization) cannot be observed, and some important factors, like fraudsters’ capabilities are ignored. Thus, some researchers suggested the rationalization side should be replaced by personal integrity because it can be more observable, others suggested the motive side needs to be expanded to include non-financial factors like ego and coercion, while others suggested a fourth side to be added to the fraud triangle which is â€Å"fraudster’s personal capabilities†. The current paper believes it is important for external auditors to consider all the fraud models to better understand why fraud occurs. The paper also suggests that all other fraud models should be regarded as an extension to Cressey’s fraud triangle model and should be integrated in one model that includes motivation, opportunity, integrity, and fraudster’s capabilities. This model should be called â€Å"the New Fraud Triangle Model†. Hence, with the new fraud triangle model, external auditors will consider all the necessary factors contributing to the occurrence of fraud. This should help them in effectively assessing fraud risk. International Auditing Standards Board. (2009). International Standard on Auditing No. 240: the Auditor’s responsibilities relating to fraud in an audit of financial statements. Lister, L. M. (2007). â€Å"A practical approach to fraud risk†, Internal Auditor, December, pp. 1-30 Murdock, H. (2008). â€Å"The three dimensions of fraud†. Internal Auditor, pp. 1-14, August. Rae, K. and Subramaniam, N. (2008). Quality of internal control procedures: Antecedents and moderating effect on organizational justice and employee fraud. Managerial Auditing Journal. 23 (2), pp. 1-43. Retrieved from: www. emerald. com Vona, L. W. (2008). Fraud risk assessment: Building a fraud audit program. Hoboken New Jersey: John Wiley and Sons, pp. 1-250 Wells, J. T. (2011). Corporate Fraud Handbook: Prevention and Detection. 3rd edition, Hoboken, New Jersey, John Wiley Sons, Inc. , pp. 1-400 Wolfe, D. T. and Hermanson, D. R. (2004). â€Å"The fraud diamond: Considering the four elements of fraud†. The CPA Journal, December, pp. 1-5