12121423 - Level II Training Book

Fraud Risk Factors 3 RISK FACTORS: • Incentive / Pressure to Commit Fraud • Opportunity (Lack of Controls, Override, Collusion) • Rationalization

AS ANY ONE FACTOR GROWS – THE RISK OF FRAUD INCREASES

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Red Flag Warnings • Audit requested items concealed by withholding evidence, requested items. • Misrepresentation (aka – lying) • False or Altered Documents • Reports of Alleged Fraud • Ratios / performance different than industry norms or past performance (Analytics)

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BlueBird CPAs

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