White Paper - Fraud Risk Indicators

Whitepaper

This is a members only resource.

Author

Barry Davidow

BCom, BAcc, MTaxLaw, ACA, CFE, CRMA, PFIIA, Advanced Diploma of Government (Management), Diplomas in Risk Management and Business Continuity, Government (Fraud Control), Government (Investigation) and International Financial Management.

Matthew Lyon

B.Comm, CPA, MIAA

Date

2023

Topics Explored

Risk Management, Fraud + Corruption

Format

White Paper

Extract/Description

Incorporating consideration of indicators of fraud into internal controls and audits helps ensure the organisation’s resources, reputation and integrity are protected, key stakeholders are satisfied, and strategic and operational objectives achieved. It is important to ensure the indicators used are relevant for the particular circumstances.

Key Points

1. The fraud triangle indicates that fraud requires three components: perceived pressure, perceived opportunity and rationalisation.

2. It is helpful to consider the evidence left behind by a fraudulent act.

3. It is useful to consider the indicators of fraud arising from issues relating to ethical culture, people and structures.

4. It is appropriate to consider whether people understand objectives and risks, including when there are substantial changes.

5. Indicators include poor communication, poor use of information to support internal controls to deter fraud, and poor communication with external parties.