Fraud is not an accounting problem - it is a social phenomenon. Explain

What will be an ideal response?

Forensic accounting is rooted in law and economics, not psychology or criminology. Thus, the interest in "why" people commit fraud, especially when conducting a fraud investigation, is explanatory (cause and effect), not predictive. Applying traditional economic theory, it is proposed that people commit fraud when the perceived reward ($) is greater than the probable loss-the calculus of fraud. Because fraud investigators are called in after a suspicion of fraud has been identified, the focus is who, when, how, and how much-not why.