Question

What are the environmental differences between governmental entities and publicly traded entities that can make governmental entities susceptible to fraud (i.e. personnel, size, purpose)?

Answer 1

Government entities means such corporations in which the majority stake is held by the government whereas publicly traded entities are those whose shares trade on a stock exchange. This is not any sort of difference that will lead to occurence of frauds in governement entity.

But governement entities are audited under different set of circumstances than other entities because they are required to report to many regulators.

Coming to our question of fraud, government agencies are always susceptible to frauds because, many people are in government jobs so that they can earn a lot in illegal way, and also they can misappropriate governement funds. The size of the government entity also makes it susceptible to frauds because it is very difficult to identify small frauds in such a large entity.