When Assessing the Risk of Fraud, an Auditor Can Consider

question 6

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

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Definitions:

Privacy Considerations

Factors taken into account to protect individuals' personal information and maintain confidentiality in various contexts.

Ethical Dilemmas

Situations in which a person must choose between actions that are evaluated as morally right or wrong.

Organizational Culture

Organizational culture denotes the system of shared assumptions, values, and beliefs that governs how people behave in companies, influencing the organization's overall environment and work dynamics.

Competitive Pressures

The forces in a market that impact the competitiveness, including rivalry among existing competitors and the threat of new entrants.