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Another Conditions that increase chances of fraud, is Capability, hence Fraud
Diamond Is Introduced:

Forth Capability: represents to someone having the necessary traits, skills and
abilities to commit fraud. It's how the fraudster not only recognizes
a particular fraud opportunity but turns it into reality

▪ Having the right organizational position or function to take advantage of fraud
opportunities.

▪ Having the appropriate expertise to take advantage of fraud opportunities.
▪ Having the confidence or ego to take advantage of fraud opportunities.
▪ Being able to coerce others to participate in fraudulent activities.
▪ Being able to deal with the stress associated with committing fraud.
▪ Being a good liar.

Fifth: Auditing Standards Governing auditor responsibilities related to fraud
in auditing financial statements

Auditing Standards Related to fraud

ISA 240 EAS 240

International standards of auditing Egyptian Accounting Standards

SAS 99

Statements on Auditing Standards

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‫جميع الحقوق محفوظة ـ الإعتداء على حق المؤلف بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونية‬