Which of the following factors is the most significant contributor to fraud risk?

Question

Quizplus · Accepted Answer

Overriding of internal controls is the most significant contributor to fraud risk as it allows individuals to bypass or ignore established procedures and safeguards, creating opportunities for fraudulent activities to occur. Poor hiring practices and collusion between employees and third parties can also increase fraud risk, but these can often be mitigated through effective internal controls and fraud prevention measures. The industry in which the entity operates can also play a role in fraud risk, but it is typically secondary to internal control weaknesses.

Which of the Following Factors Is the Most Significant Contributor