Select Yes or No in the first column to show whether each item indicates an increase risk for fraud. Use the second column to identify which fraud condition$($incentives$/$pressures$,$ opportunities, or$$ attitudes$/$rationalization$)$ is indicated. $($Complete all input fields. Select$"$N$/$A$"$ in the$"$b$.$ Fraud$$ Condition" column if the information does not indicate a fraud$$ risk.$)$

Information

a$.$ Fraud risk

b$.$ Fraud Condition

$1.$

Significant operations are located and conducted across international borders in jurisdictions where differing business environments and cultures exist.

$2.$

There are recurring attempts by management to justify marginal or inappropriate accounting on the basis of materiality.

$3.$

The company's controller works very hard, including evenings and weekends, and has not taken a vacation in two years.

$4.$

The company's board of directors includes a majority of directors who are independent of management.

$5.$

Assets and revenues are based on significant estimates that involve subjective judgments and uncertainties that are hard to corroborate.

$6.$

The company is marginally able to meet exchange listing and debt covenant requirements.

$7.$

The company's financial performance is threatened by a high degree of competition and market saturation.

$8.$

New accounting pronouncements have resulted in explanatory paragraphs for consistency for the company and other firms in the industry.

$9.$

The company has experienced low turnover in management and its internal audit function.