Fraud risk factors – events or conditions that indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud.

Opportunity, Financial Pressure, and Rationalization are the three main factors contribute to fraud activity. In your view, discuss the factor that you believe is the most crucial to creating a fraud. Provide examples to support your conclusion and defend your choice in the discussion.

Large frauds are typically associated with all of the following except:1 pointLack of segregation of duties and responsibilities.Placing undeserved trust in key employees.Operating on a crisis basisWorking with management to set realistic goals

Which of the following is a common fraud risk factor according to internal auditing standards?Group of answer choicesIneffective communication channelsAdequate employee trainingTransparent financial reportingStrong ethical culture

Incentive (or pressure) is a necessary element for a person to commit fraud. Which of the following is NOT considered a type of pressure?Question 14Answera.Financial pressuresb.Work pressurec.Personal achievementsd.Other pressures

Albrecht developed the fraud scale, which includes the following components:1 pointsituational pressures, perceived opportunity, and personal integrity.high personal debt, living beyond one’s means, drug or alcohol problems.situational pressures, personal integrity, and criminal record.None of the above are the components for the fraud scale.7.Question 7