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

Question

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In order to fully assess the risk of fraud, an auditor should take into account all of the options given. Attitudes and rationalisation can indicate whether an individual may be more likely to commit fraud, incentives and pressures can indicate whether they have a motive to commit fraud, and opportunities can indicate whether the necessary circumstances exist for fraud to occur. By considering all of these factors, an auditor can better assess the risk of fraud in an organization.

When Assessing the Risk of Fraud, an Auditor Can Consider