Have you ever thought about the fact that a particular industry in which a company operates creates risk factors for fraud? We call these industry red flags, and Tracy discusses some of the more common ones in this video, including:
- Performance substantially out of line with competitors (either much better or much worse than others in the industry)
- A highly competitive industry
- Poor reputation within the industry
- Market saturation
- Declining margins
- Industry declining in general
- Industry affected by rapidly changing technology
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