Question: Professional auditing standards discuss the three key conditions that are typically present when a financial fraud occurs and identify a lengthy list of fraud risk

Professional auditing standards discuss the three key “conditions” that are typically present when a financial fraud occurs and identify a lengthy list of “fraud risk factors.” Briefly explain the difference between a fraud “condition” and a “fraud risk factor” and provide examples of each. What fraud conditions and fraud risk factors were apparently present in the Madoff case?

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AU Section 316 Consideration of Fraud in a Financial Statement Audit in the PCAOBs Interim Standards is an authoritative source to refer to in respond... View full answer

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