What are some areas of risk in most local governments in relation to fraud? Fraud can affect any organization of any size whether it be private companies, public companies, government, or non for profit. Most fraud cases are usually small companies or private companies but fraud does affect governments nonetheless. The article, "Fraud Risks in Local Government: An Analysis of Audit Findings", states that "one in six fraud cases involves a government entity, that nearly one in three involve an entity with fewer than 100 employees". Governments tend to have higher internal control to help prevent fraud cases. One risk for local governments that may have a risk for fraud would be those with small financial staff. This can cause a weak internal control environment and fraud may be overlooked. Having a larger staff to handle finances and separating duties between management and finances can greatly reduce opportunities for fraud to occur. Setting stronger internal control systems and enforcing policies and procedures can also help reduce the amount of fraud occurring in local governments. How do I respond to this