Fraudster Perception and Internal Controls Quiz

Fraud and Internal Controls

• A fraudster perceives financial pressure, such as debt or living beyond means, as a pressure that may motivates them to commit fraud.

Internal Controls Definition

• Internal controls refer to the processes and procedures implemented by an organization to ensure the accuracy, completeness, and reliability of financial information.

Maintaining Proper Internal Controls in Small Businesses

• Owners of small businesses can maintain proper internal controls by separating duties among employees, such as having one person handle cash receipts and another person handle cash disbursements.

Components of Internal Control Structure

• The internal control structure of a company typically includes five components: control environment, risk assessment, control activities, information and communication, and monitoring and corrective action.
• The board of directors is not considered part of the internal control structure of a company.

Test your knowledge of fraudster perception and internal controls with this quiz. Answer questions about the pressures perceived by fraudsters and the role of internal controls in businesses.