1. Risk of Fraud and Illegal Acts
Chapter 8
Risk of Fraud and Illegal Acts

2. Chapter 8 Learning Objectives
Understand the prevalence of illegal acts and fraud in today’s world.
Compare and contrast various illegal acts/fraud definitions.
Describe the fraud triangle and why all three elements must exist for fraud to occur.
Define the types of fraud and fraud risk factors.
Define governance, risk management, and control in the context of fraud.
Describe fraud prevention, deterrence, and detection techniques.
Understand the behavioral aspects of fraudsters.
Describe internal auditors’ compliance and fraud-related responsibilities related to protecting the organization from regulatory violations.
Understand evolving responsibilities of the internal audit function, including the involvement of forensic accountants and fraud examination specialists.
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

3. Exhibit 8-1
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

4. Exhibit 8-2
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

5. Exhibit 8-3
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

6. Exhibit 8-4
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

7. Exhibit 8-5
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

8. Exhibit 8-6
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

9. Exhibit 8-7
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

10. Exhibit 8-8
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

11. Exhibit 8-9
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

12. Exhibit 8-10
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

13. Exhibit 8-11
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

14. Exhibit 8-12
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

15. Exhibit 8-13
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.

16. Add slides as desired
Copyright: Internal Auditing: Assurance and Advisory Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida U.S.A.