Example of financial statement fraud red flags include

Question

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All of the above options are examples of red flags for financial statement fraud. Weak internal controls can lead to an increased risk of fraud as there is less oversight and accountability. Inadequate personnel-related practices, such as minimal background checks or limited training, can make it easier for individuals to commit fraud. Irregular accounting practices, such as unexplained fluctuations in financial results or inconsistent application of accounting principles, can also indicate potential fraud. Therefore, it is important to address all three of these areas to reduce the risk of financial statement fraud.

Example of Financial Statement Fraud Red Flags Include