8.10: Difference between revisions

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Created page with "'''Risk Assessment''' '''Principle 8 - Assess Fraud, Improper Payment, and Information Security Risk''' '''Attribute''' '''8.10''' - Management considers fraud risk factors. Fraud risk factors do not necessarily indicate that fraud exists but are often present when fraud occurs. Fraud risk factors may include the following: * '''Incentive/pressure''' - Management, other personnel, or external parties have an incentive or are under pressure, which provides a motive to..."
 
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* '''Opportunity''' - Circumstances exist, such as the absence of controls, ineffective controls, or the ability of management to override controls, that provide an opportunity to commit fraud.
* '''Opportunity''' - Circumstances exist, such as the absence of controls, ineffective controls, or the ability of management to override controls, that provide an opportunity to commit fraud.
* '''Attitude/rationalization''' - Individuals involved can rationalize committing fraud. Some individuals possess an attitude, character, or ethical values that allow them to commit dishonest acts knowingly and intentionally.
* '''Attitude/rationalization''' - Individuals involved can rationalize committing fraud. Some individuals possess an attitude, character, or ethical values that allow them to commit dishonest acts knowingly and intentionally.
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Revision as of 22:34, 15 August 2026

Risk Assessment

Principle 8 - Assess Fraud, Improper Payment, and Information Security Risk

Attribute 8.10 - Management considers fraud risk factors. Fraud risk factors do not necessarily indicate that fraud exists but are often present when fraud occurs. Fraud risk factors may include the following:

  • Incentive/pressure - Management, other personnel, or external parties have an incentive or are under pressure, which provides a motive to commit fraud.59
  • Opportunity - Circumstances exist, such as the absence of controls, ineffective controls, or the ability of management to override controls, that provide an opportunity to commit fraud.
  • Attitude/rationalization - Individuals involved can rationalize committing fraud. Some individuals possess an attitude, character, or ethical values that allow them to commit dishonest acts knowingly and intentionally.

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