Why do financial reporting frauds emerge in organisations that don’t see themselves as high-risk? In this episode, Wayne and Judith unpack the real drivers behind financial reporting fraud and explain why these risks often grow quietly inside day-to-day commercial decisions.

They break down the fraud triangle and show how pressure, opportunity, and rationalisation combine to create misstatements that feel like “just a timing adjustment” rather than a breach of standards. You’ll hear how budgets, bonuses, weak controls, related-party arrangements, and unrealistic estimates create space for financial reporting fraud to take hold, and why culture and audit committee oversight remain the strongest defences.

Whether you're preparing financials, auditing them, or reviewing them at board level, this conversation gives you clear, practical insights to recognise fraud risk early and prevent it.

🎧 In this episode, you’ll learn:

• How pressure, incentives, and culture drive fraud
• Where weak controls create opportunities for misstatement
• Why rationalisation makes fraud feel “justifiable”
• The early warning signs of financial reporting fraud
• The role audit committees play in prevention

Financial Reporting Conversations is brought to you by Basford Consulting helping professionals go beyond compliance and get financial reporting right.

For technical insights, training, and resources that make the unknowns in financial reporting known, visit basfordconsulting.com

🔗 Connect with us:
LinkedIn: Wayne Basford & Judith Leung
YouTube: @BasfordConsulting
Website: basfordconsulting.com