For each of the scenarios below, identify if the scenario is a fraud risk factor relating to misstatements arising from fraudulent financial reporting or fraud risk factors relating to misstatements arising from misappropriation of assets and the associated condition generally present when fraud occurs.

Question-1: Excessive interest by management in maintaining or increasing the entitys stock price

Select one:

a. Attitudes/rationalizations Misstatements arising from misappropriation of assets.

b. Attitudes/rationalizations Misstatements from fraudulent financial reporting.

c. Incentives/pressures Misstatements arising from misappropriation of assets

d. Incentives/pressures -Misstatements from fraudulent financial reporting.

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Question 2

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Inadequate monitoring of controls, including automated controls and controls over interim financial reporting

Select one:

a. Attitudes/rationalizations Misstatements arising from misappropriation of assets.

b. Opportunities - Misstatement from fraudulent financial reporting.

c. Incentives/pressures Misstatements arising from misappropriation of assets

d. Incentives/pressures -Misstatements from fraudulent financial reporting.

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Question 3

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Inadequate physical safeguards over cash, investments, or inventory.

Select one:

a. Attitudes/rationalizations Misstatements arising from misappropriation of assets.

b. Attitudes/rationalizations Misstatements from fraudulent financial reporting.

c. Incentives/pressures Misstatements arising from misappropriation of assets

d. Opportunities - Misstatement arising from misappropriation of assets

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Question 4

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Ineffective board of directors or audit committee oversight over internal control.

Select one:

a. Attitudes/rationalizations Misstatements arising from misappropriation of assets.

b. Attitudes/rationalizations Misstatements from fraudulent financial reporting.

c. Opportunities - Misstatement from fraudulent financial reporting.

d. Incentives/pressures -Misstatements from fraudulent financial reporting.

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Question 5

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Large amounts of cash on hand or processed.

Select one:

a. Opportunities - Misstatement arising from misappropriation of assets

b. Attitudes/rationalizations Misstatements from fraudulent financial reporting.

c. Incentives/pressures Misstatements arising from misappropriation of assets

d. Incentives/pressures -Misstatements from fraudulent financial reporting.

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Question 6

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Management has significant financial interests in the entity

Select one:

a. Attitudes/rationalizations Misstatements arising from misappropriation of assets.

b. Attitudes/rationalizations Misstatements from fraudulent financial reporting.

c. Incentives/pressures Misstatements arising from misappropriation of assets

d. Incentives/pressures -Misstatements from fraudulent financial reporting.

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Question 7

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New accounting, statutory or regulatory requirements

Select one:

a. Attitudes/rationalizations Misstatements arising from misappropriation of assets.

b. Attitudes/rationalizations Misstatements from fraudulent financial reporting.

c. Incentives/pressures Misstatements arising from misappropriation of assets

d. Incentives/pressures -Misstatements from fraudulent financial reporting.

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Question 8

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Promotions, compensation, or other rewards inconsistent with expectations.

Select one:

a. Attitudes/rationalizations Misstatements arising from misappropriation of assets.

b. Attitudes/rationalizations Misstatements from fraudulent financial reporting.

c. Incentives/pressures Misstatements arising from misappropriation of assets

d. Incentives/pressures -Misstatements from fraudulent financial reporting.

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Question 9

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Significant bank accounts in tax-haven jurisdictions for which there appears to be no clear business justification.

Select one:

a. Attitudes/rationalizations Misstatements arising from misappropriation of assets.

b. Attitudes/rationalizations Misstatements from fraudulent financial reporting.

c. Does not apply

d. Incentives/pressures -Misstatements from fraudulent financial reporting.

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Question 10

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Significant related-party transactions not in the ordinary course of business.

Select one:

a. Attitudes/rationalizations Misstatements arising from misappropriation of assets.

b. Attitudes/rationalizations Misstatements from fraudulent financial reporting.

c. Incentives/pressures Misstatements arising from misappropriation of assets

d. Opportunities - Misstatement from fraudulent financial reporting.