The purpose of this study is to investigate the factors affecting fraud risk assessment in financial reporting as well as the management ability to commit fraud in Iraq and Iran. The research method is descriptive-survey and its statistical population consists of independent auditors in both countries. The data was collected using field surveys and questionnaires. The results of this study reveal that in the view of independent auditors, the most important factor in fraud risk assessment in financial reporting is \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\"management motivations\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\" and the least important is \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\"rationalization\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\". In addition, the results suggest that the ability to exploit internal control weaknesses is a major factor affecting management\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'s ability to commit financial reporting fraud. Therefore, the auditor needs to have sufficient knowledge of the internal control system to detect and assess significant risks and perform effective planning. Hence, it is recommended that relevant authorities provide the necessary training and skills to independent auditors in order to improve the risk assessment of fraud and consequently the detection and assessment of fraud factors

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