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Here are risk related to ATTITUDE and RATIONALIZATION to justify fraudulent behavior:

1) Inappropriate ethical standards or failure to effectively communicate or support a firm’s ethical standards.

2) Excessive participation by nonfinancial management in the selection of accounting standards and the determination of estimates.

3) Known history or allegations of violations of laws and regulations by management or board members.

4) Management’s obsession with maintaining or increasing the firm’s stock price or earnings trend.

5) Making commitments to third parties to achieve aggressive results.

6) Failing to correct known reportable conditions in a timely manner.

7) Inappropriately minimizing earnings for tax purposes.

8) Management’s continued use of materiality as a basis to justify inappropriate accounting.

9) A strained relationship between management and the current or previous auditor.

AND HERE ARE

the four risk factors related to the OPPORTUNITIES to commit fraud in financial reporting:

1) The nature of the firm’s industry or operations.
2) Ineffective management monitoring.
3) A complex or unstable organizational structure.
4) Deficient internal controls.