ABSTRACT
Fraud is defined as the intentional misrepresentation or concealment of information to deceive others with the objective of gaining unfair or unlawful gains. It is a global problem affecting organizations of all types and sizes in all industries. While the Fraud Triangle is a useful tool to categorize the drivers of fraudulent activities, most users of the model fail to consider a very important aspect of fraudulent activities and the people who commit them: Their competence, character, and arrogance. Fraud-related controls should exist to prevent the hiring of dishonest individuals. Internal auditors can play a crucial role helping their organizations lower their vulnerability to fraud. The Fraud Triangle can be expanded to cover six attributes that contribute to fraud, thus creating a Hexagon: Opportunity, Need/Pressure, Justification, Arrogance, Character, Competence. Character is a key determinant of the potential for fraud, so hiring techniques within the organization should also include procedures to assess the character of job candidates.
