CSA 240 - Risk Factors Relating to Misstatements Arising from Fraudulent Financial Reporting (appendix 1) I = Incentive/Pressures, O = Opportunities, A = Attitudes / Rationalization Check off under I, O, A which Fraud factor each statement relates to: I O A 1 Operating losses making the threat of bankruptcy, foreclosure, or hostile takeover imminent X 2 Communication, implementation, support, or enforcement of the entity's values or ethical standards by management, or the communication of inappropriate values or ethical standards, that are not effective. X 3 There is excessive pressure on management or operating personnel to meet financial targets established by those charged with governance, including sales or profitability incentive goals. X 4 Significant related-party transactions not in the ordinary course of business or with related entities not audited or audited by another firm. X 5 The owner-manager makes no distinction between personal and business transactions. X
This is the end of the preview.
access the rest of the document.