The research aims at assessing efficiency of the fraud triangle as instructed by Vietnamese Standards on Auditing Criteria 240 (VSA 240) in detecting and predicting frauds in listed enterprises in Vietnam. Using a sample of 78 companies listed on the HOSE in 2012, the research employs Logit regression analysis to examine relationships between factors of the fraud triangle and possibility of frauds in financial statements. The results show that possibility of fraud has a statistically significant relationship with three components of “pressure/motive” factor, one component of “opportunity”, and two components of “reationalization.” The model including such variables can give exact predictions about 83.33% of surveyed companies, and 80% of companies not included in the survey. The model enable
auditors and auditing companies to forecast possible frauds in financial statements.