Final answer:
Risk factors, unusual items, and abnormalities can all be indicators of potential fraud. Weak internal controls, sudden expense increases, and irregular account activity are examples of such indicators.
Step-by-step explanation:
In the context of fraud, risk factors are indicators that suggest the potential for fraudulent activity. Some common risk factors include weak internal controls, inadequate segregation of duties, and lack of oversight. These factors increase the susceptibility to fraud and alert auditors or investigators to the possibility of fraudulent behavior.
In addition to risk factors, unusual items can also raise red flags regarding fraud. For example, a sudden increase in expenses, unexplained discrepancies in financial records, or unexpected cash shortages can all signal potential fraud.
An abnormality that may alert someone to fraud can be an irregular pattern or behavior that deviates from the norm. This could include unusual transactions, abnormal changes in account balances, or unexplained discrepancies. Identifying and investigating abnormalities is crucial for detecting and preventing fraud.