When Assessing the Risk of Fraud, an Auditor Can Consider

question 39

Multiple Choice

When assessing the risk of fraud, an auditor can consider:

• A) Attitudes and rationalization to justify a fraud.
• B) Incentives and pressures to commit fraud.
• C) Opportunities to perpetuate a fraud.
• D) All of the above.

---

Definitions:

Organizational Behavior

The study of how individuals and groups interact within an organization, focusing on improving organizational effectiveness, culture, and employee well-being.

Autocratic Model

A leadership or governance style characterized by individual control over all decisions and little input from group members.

Bureaucracies

Administrative systems organized into hierarchical structures, governing organizations with strict rules and protocols to ensure efficiency and order.

Behavior Patterns

Repetitive and habitual ways of acting or responding that characterize an individual or group over time.