[1Yin-B] Poster 2

[1Yin-B-50] Structuring the "Opportunity" in Fraudulent Accounting SchemesAn Approach Using the Action Decomposition Tree

〇Hiroshi Taki¹ (1. Ritsumeikan University)

Keywords:

financial statement audit,ontology,fraudulent financial reporting

This study clarifies the structural mechanism of "opportunity" in fraudulent accounting within listed companies using the Action Decomposition Tree framework. While prior research has focused on statistical fraud detection, the structural logic behind how perpetrators select and execute specific schemes has remained underexplored. This paper proposes a theoretical framework conceptualizing fraud as a two-layered structure: "ex-ante design/assessment" and "ex-post contingent unfolding". First, the "Fraud Scheme Assessment Model" is introduced to represent how perpetrators evaluate schemes based on feasibility, concealability, purposiveness, and cost, while anticipating institutional constraints such as internal controls and auditing. Second, the "Malfunction-Oriented Action Model" analyzes the dynamic processes of observation, detection, and response following fraud execution. Through a case study of round-tripping transactions, this study demonstrates that it is possible to complementarily theorize the perpetrator's design rationality and the organization's observational structure. This framework provides a theoretical foundation for auditors to conduct structural examinations of fraud risk at the scheme level.