Although the existence of an efficient accounting and internal control systems reduces the possibility of
misrepresenting financial reports due to fraud and error, there is always the risk that the system of internal control
may not prevent or discover the respective misrepresentation. Furthermore, any accounting and internal control
system can be inefficient against a fraud committed following a secret agreement between the employees or a fraud
committed by the management. The managers of certain levels can press (for ignoring) the control that would
prevent the commission of fraud by other employees, for example by means of the indications given by their
subordinated about the manipulation of accounting entries, the falsification of accounting documents, or concealing
information about economic operations.
In evaluating fraud risk, the auditor should consider, among others, the following questions (Munteanu V., Zuca
M., Zuca g., 2010, p. 36):