Risk assessment often involves considering where fraud risk may be present.

Required: For each scenario below, choose the appropriate fraud triangle risk factor. Each selection may be used once, more than once, or not at all. $(7$ points; $1$ point each$)$

Group of answer choices

The company has an entity$-$level code of conduct but the employees at the company don$$t seem to think that management cares if they closely attend to it$.$

$[$ Choose $]$

The company has many related parties that it enters into transactions with.

$[$ Choose $]$

The revenue accounting at the audit client is complex due to how contracts are structured and the new employees at the company haven$$t familiarized themselves with this accounting yet.

$[$ Choose $]$

There has been recent turnover on the management team and the prior CFO was fired to not achieving earnings targets.

$[$ Choose $]$

The company doesn$$t have secure IT systems and is susceptible to potential cyberattacks.

$[$ Choose $]$

A shortage of accountants has led to the company hiring less qualified applicants in recent years.

$[$ Choose $]$

There is a lack of controls in place relating to the purchasing process involving accounts payable and accrued expenses.