BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The fraud risk assessment should address four key areas: asset misappropriation, financial and non-financial reporting, regulatory compliance areas, and illegal acts.

Detailed explanation-2: -In the 1970s, criminologist Donald R. Cressey published a model called the “fraud triangle”. The fraud triangle outlines the three conditions that lead to higher instances of occupational fraud: motivation, opportunity, and rationalization.

Detailed explanation-3: -A good system of internal controls, with the right balance of preventive and detective controls, can greatly reduce an organization’s vulnerability to fraud by reducing the fraudster’s opportunity to commit fraud and by increasing the likelihood of detection of a fraud that is committed.

Detailed explanation-4: -3 Risk factors that relate to misstatements arising from misappropriation of assets are also classified according to the three conditions generally present when fraud exists: incentives/pressures, opportunities, and attitudes/rationalizations.