Fraud Risk Assessment
• TWO TYPES OF FRAUD RISK: o RISK OF FRAUDULENT FINANCIAL REPORTING (Cooking the Books) o RISK OF MISAPPROPRIATIONOF ASSETS (Stealing Company Assets)
Fraud Risk Factors
• 3 RISK FACTORS: o Incentive / Pressure to Commit Fraud o Opportunity (Lack of Controls, Override, Collusion) o Rationalization o AS ANY ONE FACTOR GROWS – THE RISK OF FRAUD INCREASES
BlueBird CPAs
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