Question

Question 27 Factors affecting Occupational Fraud include:

(A) Financial condition of the organization.

(B) Pressure to show profits in the marketplace,

(C) Internal accounting controls.

(D) The state of the economy

(E) All of the above

Answer 1

Answer is all of the above.

Occupational frauds are those frauds committed by the employees, management and key personnel to the detriment of the organization. It includes misrepresentation in the financial statements too. So,

A) when the financial condition of the organization is weak then inorder to make it look fraud may be committed.

B) pressure to show profits in the market place also follows the same logic.

C) when internal accounting controls are not good, employees have a very high chances to commit fraud.

D) In a weakened economy there are high chances of commitment of occupational frauds to survive the economic jolts.