Presented below are three conditions that exist in an entity that may or may not be considered to be fraud risk factors. Indicate whether or not each condition represents a fraud risk factor; the type of fraud (misappropration of assets vs. fraudulent financial reporting); and the category of the factor (incentives/pressures vs. opportunities vs. attitudes/rationalizations) when applicable.

Fraud Risk Factor (Yes or No) Type of Fraud Category For efficiency purposes, the accounts receivable derk receives customer checks, deposits the checks, and records the cash receipts in the cash and accounts receivable records. The executive vice president of manufacturing is preoccupied with the selection of accounting principles or the determination of significant cost estimates made by the accounting department. A public company has an audit committee of its board of directors that includes five members who are independent of management with one of the members having significant experience in the financial reporting and auditing of public companies