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Flashcards in Fraud Risk Factors Deck (11):
1

Management failing to correct known significant deficiencies on a timely basis

Attitude/ rationalizations

Misstatement from fraudulent reporting

2

Inadequate monitoring of controls

Opportunities

Misstatement from Financial Reporting

3

Management has significant financial interest in the entity

Incentives/Pressures

Misstatement from Fraudulent financial reporting

4

Large amounts of Cash on hand or processed

Opportunities

Misstatements arising from Misappropriation of Assets

5

Significant Bank accounts in Tax-haven jurisdictions for which their appears to be no clear business justification

Opportunities

Misstatement from Fraudulent financial reporting

6

Promotions, compensations or other rewards inconsistent with expectations

Incentives/Pressures

Misstatements arising from Misappropriation of Assets

7

Significant related-party transactions not in the ordinary course of business

Opportunities

Misstatement from Fraudulent financial reporting

8

Excessive interest by management in maintaining or increasing the entities stock price

Attitude/ rationalizations

Misstatement from Fraudulent financial reporting

9

New Accounting, Statutory or regulatory requirements

Incentives/Pressures

Misstatement from Fraudulent financial reporting

10

Inadequate physical safeguards over cash, investments or inventory

Opportunities

Misstatements arising from Misappropriation of Assets

11

Ineffective board of directors or audit committee oversight over internal controls

Opportunities

Misstatement from Fraudulent financial reporting