Which of the following is NOT a key indicator for fraud as set out by ISA 240?

The correct answer identifies "organizational culture" as not being explicitly listed as a key indicator for fraud in ISA 240. The International Standard on Auditing (ISA) 240 highlights three specific conditions that are commonly recognized as key indicators of fraud: incentives/pressures, opportunities, and attitudes/rationalizations.

Incentives or pressures refer to the motivations that might drive individuals to commit fraud, such as financial difficulties or personal pressures. Opportunities encompass the circumstances that allow fraud to occur, like weak internal controls. Attitudes or rationalizations pertain to how individuals justify unethical behaviors, allowing fraud to take place without guilt.

While organizational culture can certainly influence the likelihood of fraudulent behavior within an organization, it is broader and more complex than the specific conditions outlined in ISA 240. This makes it a significant factor to consider in a general discussion about fraud prevention and detection, but not a core key indicator as defined by this particular standard. Therefore, recognizing the explicit focus of ISA 240 is crucial when analyzing fraud risk factors.