As per Association of Certified Fraud Examiners (ACFE) 2022 report 85% of all fraudsters displayed at least one behavioural red flag. Briefly explain any such five behavioural red flags as early warning indicator of frau

Following are the early warning indicators of fraud: Unusual Financial Activity: This may include unexplained transactions, changes in account balances, or unexpected cash flow patterns, unexplained losses, increased expenses and/or decreased revenues. Poor Accounting or inconsistent or Missing Documentation: If financial records are incomplete, missing, or do not match up with other records, any accounting or record-keeping irregularities, such as missing documents, unexplained balances, or unrecorded transactions this could be a red flag for fraud. Unusual behaviours or Changes in behaviours or lifestyle by Employees: This could include employees who suddenly start working unusual hours, show signs of financial stress, or exhibit other unusual behaviours. Keep an eye or understand from interviewing with key persons if they observed any sudden changes in behaviour or lifestyle of employees or stakeholders. For example, if an employee suddenly starts buying expensive items, it could be a red flag. Unexplained Inventory or Movable Assets Shortages: If inventory levels or movable assets are lower than expected or if there is a discrepancy between inventory levels, movable assets and its records, this could be a sign of fraud. Stealing of inventory happens in industry in trading and manufacturing of consumer goods like high value mobile phones, tablets, laptops etc. Employee Turnover: High employee turnover, particularly in key financial roles, could be a sign of fraudulent activity which needs to be carefully probed. Weak or lack of Internal Controls: If an organisation has weak internal controls, this could make it easier for fraud to occur. Be aware of any instances where there is a lack of internal controls or segregation of duties, which could make it easier for fraud to occur. Complaints or Tip: If employees, customers, or vendors report suspicious activity, this should be taken seriously and investigated since majority of frauds are detected based on Complaints or tip and not by an internal audit or external audit. Weaknesses in IT Security: Any weaknesses in IT security that could allow unauthorised access to sensitive data or transactions. Many entities in addition to financial audit also do audit of their systems and network with the help of Vulnerability assessment and Penetration testing (VAPT). Suspicious Emails or Messages: If employees receive emails or messages that appear to be from a legitimate company or organisation, but are asked to click on a link or provide additional information, it could be a phishing scam designed to steal entity's information. By monitoring these early warning indicators and implementing strong internal controls, organisations can help prevent fraud and minimize its impact if it does occur.