Internal Controls and Whistleblowing

Reflections on Whistleblowing and the Fraud Triangle Student Instructor Institution Course and Code Date Reflections on Whistleblowing and the Fraud Triangle 1 What are the pros and cons of “the fraud triangle”? Should we use that as a good guideline in the future? The fraud triangle, which categorizes fraud in terms of opportunity, pressure and rationalization, is insightfully and systematically the real and practical theory type to consider fraud as far as necessary prevention is concerned (The Fraud Triangle, 2020, as cited in Association of Certified Fraud Examiners). Because of its simplicity, the fraud triangle can be of great use to organizations that need a basic starting point to evaluate the risks. For example, restricting opportunities because of the strong internal controls minimizes the chances of fraud. However, there are some restrictions to the model. It distorts the thought process of individuals as well as the interactions of organizations. For instance, it fails to cover cultural or systemic things that allow unethical practices. In addition, the elements of the fraud triangle do not consider how emerging technologies or the interconnected world affect fraud risk. Although it is still helpful to use in the future, guidelines need to add other dimensions, such as ethical culture, leadership, and personality, to gain more coverage on fraud. 2 What guidelines should new accountants consider before whistleblowing on their clients or employers? How does that differ, if at all, with a veteran accountant? From the views of new accountants, whistleblowing involves careful planning and preparation. These are getting clear and supporting data, being familiar with organizational procedures, and using internal procedures for reporting before going outside (TEDxTalks, 2019). They should also ensure that they acquaint themse...