[Why Identifying Red Flags for Material Fraud is a Challenging Task]

“Frauds are designed to avoid detection and are often complex or occur with management collusion,” says Abbey. The complexity of financial transactions, lack of transparency in some organizations, and the use of sophisticated fraud techniques are some of the reasons why it is challenging to identify red flags for material fraud. The article emphasizes the need for a collaborative approach to fraud prevention, involving management, employees, auditors, and investigators. The development of a culture of honesty and ethical behavior within organizations is also essential to prevent fraud.

Click on the link below to know more on why red flag that suggest material fraud are so hard to spot:

https://www.icaew.com/insights/viewpoints-on-the-news/2023/jan-2023/Why-red-flags-that-suggest-material-fraud-are-so-hard-to-spot

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