Fraudulent Financial Reporting Basics Flashcards Preview

Audit Simulation > Fraudulent Financial Reporting Basics > Flashcards

Flashcards in Fraudulent Financial Reporting Basics Deck (5):
1

Incentive/Pressure

Usually happens when Management is

- Under Pressure
- From outside or inside sources
- Expected to achieve a goal/target (even if unrealistic)

2

Opportunity

Situation that allows a misrepresentation to happen.

- Deficiencies in internal control

3

Attitude/Rationalization

Mindset that justifies an bad act. (entitlement)

4

Misappropriation of assets

Involves theft of assets

5

Fraudulent Financial Reporting

involves Intentional misstatements

- Omissions
- Deceptive financial disclosures