Detection and Prevention of Financial Crimes: An Application of Fraud Triangle Theory in KP Pakistan

Detection and prevention of fraudulent practices is a challenging assignment in developed as well as in developing countries. The efforts become more crucial in government sector, as public trust on institutions, government officials and resources. Dishonest workers and employees try to cheat the official machinery for their personal benefits. Thus, purpose of this study is to find relationship between fraud incidents and the fraud triangle theory (FTT). A well-designed survey was conducted and data was analyzed using SEM, correlation analysis and demographic analysis. Results revealed significant relation between elements of FTT and fraud incidents leads to salary privileges revision