Question 1
Which of the following is a factor that relates to incentives/pressures to misappropriate assets?
◦ weak internal controls
◦ significant personal financial obligations
◦ management's practice of making overly aggressive forecasts
◦ anger and fear
Question 2
Which of the following is a risk factor related to opportunities and financial statement fraud?
◦ ineffective communication of company values
◦ promotions inconsistent with expectations
◦ significant related-party transactions
◦ adverse relationships between management and employees