{"catalogRevision":"24028ffcfc2b295fa1b08ee6caa84b765f0731b321496bf4f548c49ad2177028","kind":"record","record":{"attributes":{"category":"financial_reporting","domain":["Financial Reporting Controls (SOX)","Compliance, Audit & Assurance"],"inherent_rating":"high","taxonomy":["sox-rmm-assertion","coso-erm-risk"]},"canonicalUrl":"https://controlsmap.com/?v=1&node=risk%3Afin-financial-statement-fraud","description":"Intentional misstatement through fictitious revenue, phantom inventory/assets, ghost-employee payroll, or management override of controls — inflating results and deceiving investors and regulators.","details":{"category":"financial_reporting","impact":"critical","inherent_rating":"high","likelihood":"low","risk_id":"fin-financial-statement-fraud","taxonomies":["sox-rmm-assertion","coso-erm-risk"],"treatment":"mitigate"},"id":"risk:fin-financial-statement-fraud","mapUrl":"https://controlsmap.com/?v=1&node=risk%3Afin-financial-statement-fraud","sourceIds":["cobit-2019","coso-ic","iia-2024","iso-27001","nist-800-53","soc2","sox"],"sourceUrl":null,"title":"Financial-statement fraud and management override","type":"risk"},"relationships":[{"expectedCatalogRevision":"24028ffcfc2b295fa1b08ee6caa84b765f0731b321496bf4f548c49ad2177028","id":"rel:64ea51facc02eefd0dbddc8d69cec6c321fd3df66cdc42f67cb99220261fb99c","properties":{"rationale":"Separating authorization/recording/custody/reconciliation stops one person perpetrating and concealing fraud or override.","strength":"primary"},"sourceDetailPath":"/data/v1/records/uc-uc-fin-05-52738635.json","sourceId":"uc:UC-FIN-05","targetDetailPath":"/data/v1/records/risk-fin-financial-statement-fraud-1dd35d5a.json","targetId":"risk:fin-financial-statement-fraud","type":"mitigates"},{"expectedCatalogRevision":"24028ffcfc2b295fa1b08ee6caa84b765f0731b321496bf4f548c49ad2177028","id":"rel:688aeefa89bd1c70e194249f121b968aa55b0c19fdddaa2be64c359ebe320eee","properties":{"rationale":"Professional courage to communicate uncomfortable truths supports surfacing and reporting management override rather than acquiescing to it.","strength":"related"},"sourceDetailPath":"/data/v1/records/uc-uc-audit-04-c880e18f.json","sourceId":"uc:UC-AUDIT-04","targetDetailPath":"/data/v1/records/risk-fin-financial-statement-fraud-1dd35d5a.json","targetId":"risk:fin-financial-statement-fraud","type":"mitigates"},{"expectedCatalogRevision":"24028ffcfc2b295fa1b08ee6caa84b765f0731b321496bf4f548c49ad2177028","id":"rel:7b668b3e28f5ddd63bcc1b906b58c137b3a35d5066701a4b1a6a36bae28b9a8c","properties":{"rationale":"Protecting records against falsification and unauthorized alteration makes fraudulent transactions harder to record and conceal.","strength":"related"},"sourceDetailPath":"/data/v1/records/uc-uc-audit-25-e23c8618.json","sourceId":"uc:UC-AUDIT-25","targetDetailPath":"/data/v1/records/risk-fin-financial-statement-fraud-1dd35d5a.json","targetId":"risk:fin-financial-statement-fraud","type":"mitigates"},{"expectedCatalogRevision":"24028ffcfc2b295fa1b08ee6caa84b765f0731b321496bf4f548c49ad2177028","id":"rel:7d267c88d57a775742e932ac4bebd9bd96a44865bbbe30bf8f6d36c5bb4acc15","properties":{"rationale":"Board and senior-management support with unrestricted access give internal audit the independence to detect and deter management override.","strength":"related"},"sourceDetailPath":"/data/v1/records/uc-uc-audit-02-0279f203.json","sourceId":"uc:UC-AUDIT-02","targetDetailPath":"/data/v1/records/risk-fin-financial-statement-fraud-1dd35d5a.json","targetId":"risk:fin-financial-statement-fraud","type":"mitigates"},{"expectedCatalogRevision":"24028ffcfc2b295fa1b08ee6caa84b765f0731b321496bf4f548c49ad2177028","id":"rel:7e4d0db2f3003887ef169db990cc3aad1399ad853299f15f57f40772f45f2535","properties":{"rationale":"Analytical evidence-gathering and deviation analysis can surface fictitious or override transactions for investigation.","strength":"related"},"sourceDetailPath":"/data/v1/records/uc-uc-audit-13-3dae730e.json","sourceId":"uc:UC-AUDIT-13","targetDetailPath":"/data/v1/records/risk-fin-financial-statement-fraud-1dd35d5a.json","targetId":"risk:fin-financial-statement-fraud","type":"mitigates"},{"expectedCatalogRevision":"24028ffcfc2b295fa1b08ee6caa84b765f0731b321496bf4f548c49ad2177028","id":"rel:82f09dc0d1998db16eb313a371bb57aa03bedb773f44fcac37980166b3ca25a3","properties":{"rationale":"Authorization plus tamper-evident, attributable approval trails deter and expose fraudulent entries and override.","strength":"primary"},"sourceDetailPath":"/data/v1/records/uc-uc-fin-04-70e42862.json","sourceId":"uc:UC-FIN-04","targetDetailPath":"/data/v1/records/risk-fin-financial-statement-fraud-1dd35d5a.json","targetId":"risk:fin-financial-statement-fraud","type":"mitigates"},{"expectedCatalogRevision":"24028ffcfc2b295fa1b08ee6caa84b765f0731b321496bf4f548c49ad2177028","id":"rel:9b1f4741ce2d6a0d316875fa449b489a075da04aced37ae5635d1d20824bf667","properties":{"rationale":"Policy-based control activities and period-end oversight raise the barrier to management override and fraud.","strength":"related"},"sourceDetailPath":"/data/v1/records/uc-uc-fin-01-bb3ef2cd.json","sourceId":"uc:UC-FIN-01","targetDetailPath":"/data/v1/records/risk-fin-financial-statement-fraud-1dd35d5a.json","targetId":"risk:fin-financial-statement-fraud","type":"mitigates"},{"expectedCatalogRevision":"24028ffcfc2b295fa1b08ee6caa84b765f0731b321496bf4f548c49ad2177028","id":"rel:b9d622e2f67556f55261ae4f5e988085968ccaa506b795e041dec12b6e43453d","properties":{"rationale":"Physical counts detect phantom inventory/assets used in statement fraud.","strength":"related"},"sourceDetailPath":"/data/v1/records/uc-uc-fin-10-f87a53c1.json","sourceId":"uc:UC-FIN-10","targetDetailPath":"/data/v1/records/risk-fin-financial-statement-fraud-1dd35d5a.json","targetId":"risk:fin-financial-statement-fraud","type":"mitigates"},{"expectedCatalogRevision":"24028ffcfc2b295fa1b08ee6caa84b765f0731b321496bf4f548c49ad2177028","id":"rel:d16fa55ea73c81e926d44aba6099c93de3758d7001a4159873a2f6cd0195a656","properties":{"rationale":"Professional skepticism, critically assessing the reliability and sufficiency of information, is the classic posture for detecting fraud and override.","strength":"related"},"sourceDetailPath":"/data/v1/records/uc-uc-audit-07-50f8c2fa.json","sourceId":"uc:UC-AUDIT-07","targetDetailPath":"/data/v1/records/risk-fin-financial-statement-fraud-1dd35d5a.json","targetId":"risk:fin-financial-statement-fraud","type":"mitigates"},{"expectedCatalogRevision":"24028ffcfc2b295fa1b08ee6caa84b765f0731b321496bf4f548c49ad2177028","id":"rel:eb4584970a3d10a43b8e6b52a71626665c9a47c8f2baca3126259e6676457b3c","properties":{"rationale":"Independent testing of control operating effectiveness can detect management override and fraudulent transactions.","strength":"related"},"sourceDetailPath":"/data/v1/records/uc-uc-audit-21-6406caa4.json","sourceId":"uc:UC-AUDIT-21","targetDetailPath":"/data/v1/records/risk-fin-financial-statement-fraud-1dd35d5a.json","targetId":"risk:fin-financial-statement-fraud","type":"mitigates"}],"schemaVersion":1}