Fraud Risk Factors Checklist

This checklist is laser-focused on evaluating factors that may put the business into a high risk of fraud. It was divided into 2 parts: (1) assessment of risks from misstatements arising from fraudulent financial reporting and (2) misappropriation of assets. The first part tackles threats to financial stability or profitability by economic, industry, or entity operating conditions, and excessive pressure from management to meet the requirements of third parties. The second part highlights the assessment of any adverse relationships between the entity and employees with access to cash or other assets susceptible to theft that may motivate those employees to misappropriate those assets.This checklist is laser-focused on evaluating factors that may put the business into a high risk of fraud. It was divided into 2 parts: (1) assessment of risks from misstatements arising from fraudulent financial reporting and (2) misappropriation of assets. The first part tackles threats to financial stability or profitability by economic, industry, or entity operating conditions, and excessive pressure from management to meet the requirements of third parties. The second part highlights the assessment of any adverse relationships between the entity and employees with access to cash or other assets susceptible to theft that may motivate those employees to misappropriate those assets.