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Intermediate

Practice Drills: Applying the Fraud Triangle to a Sample Case

A practice-first course built around one detailed sample case: a fictional listed Indian mid-cap with a lender exposure, a promoter under strain and a finance function that has quietly grown too powerful. You will work the case the way a forensic auditor, internal auditor or bank and NBFC compliance officer would. First you build an evidence worksheet. Then you drill each side of the fraud triangle in turn: pressure from covenants, pledged promoter shares, guidance and incentive pay; opportunity from control gaps in the revenue and cash cycle, weak audit committees, related party flows and lending-side weaknesses such as evergreening; and rationalisation from management language, internal emails and culture signals. You then score the case, extend it to the fraud diamond, and convert the findings into specific audit procedures under SA 240 and an escalation memo that respects Section 143(12) of the Companies Act and the RBI Master Directions on Fraud Risk Management. The course ends with a blind second case and an honest look at where the triangle fails, using Satyam and PNB as hindsight tests.

Fraud TriangleFraud Risk AssessmentInternal ControlsSA 240RBI Fraud DirectionsForensic Case Practice

MODULES

6

DURATION

4 Hours

TRACK

Forensic Accounting & Compliance

What You'll Master

Use the fraud triangle as a structured evidence worksheet rather than a theory diagram

Identify and grade financial, market and personal pressure from filings, pledges, covenants and pay structures

Map control gaps in revenue, cash, procurement and related party flows that create opportunity

Read rationalisation signals in management commentary, internal communication and tone at the top

Separate pressure that exists in every company from the combinations that actually predict fraud

Turn a fraud risk assessment into specific SA 240 audit procedures and a clear escalation memo

Test the triangle against real Indian frauds and recognise its blind spots

Access Level

LEARNER

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Everything included

Full Text Playbooks

Actionable Exercises

Mobile Reading Mode

Lifetime Updates

Curriculum Breakdown

Chapter 1: Setting Up the Drill

3 Lessons

The Fraud Triangle as a Working Tool, Not a Theory Slide11 min read

Meet the Case: The Background File on the Sample Company13 min read

Drill: Building Your Fraud Triangle Evidence Worksheet12 min read

Chapter 2: Pressure Drills

3 Lessons

Drill: Reading Financial Pressure From Covenants, Pledges and Guidance14 min read

Drill: Incentive Pressure From Bonuses, ESOPs and Sales Targets13 min read

Drill: Separating Everyday Pressure From Pressure That Predicts Fraud12 min read

Chapter 3: Opportunity Drills

3 Lessons

Drill: Mapping Control Gaps in the Revenue and Cash Cycle14 min read

Drill: Governance Gaps in the Board, Audit Committee and Related Party Approvals13 min read

Drill: Opportunity on the Lender Side With Disbursements, Evergreening and Weak Monitoring14 min read

Chapter 4: Rationalisation Drills

2 Lessons

Drill: Reading Rationalisation in Management Commentary and Internal Emails13 min read

Drill: Tone at the Top, Whistleblower Signals and Culture Red Flags12 min read

Chapter 5: From Triangle to Action

4 Lessons

Drill: Scoring the Sample Case on All Three Sides13 min read

Drill: Extending the Case to the Fraud Diamond and Capability12 min read

Drill: Turning Triangle Findings Into SA 240 Audit Procedures14 min read

Drill: Writing the Escalation Memo Under Section 143(12) and RBI Fraud Directions14 min read

Chapter 6: Capstone Drills

2 Lessons

Full Drill: Applying the Triangle to a Second Case Blind15 min read

Full Drill: Testing the Triangle Against Satyam and PNB in Hindsight14 min read