Business value is a function of risk and return. This is why, when appraising companies, valuation experts are always factoring fraud risk into a business valuation. Although valuations typically aren’t designed to unearth dishonest behavior, experts may expand the scope of their engagement if they spot something suspicious — particularly if they believe financial statements are inaccurate. Possible risks  A valuator’s fraud risk assessment starts with the subject company’s internal controls. When interviewing management, experts ask about the business’s policies and procedures to protect assets, improve operating efficiency and ensure reliable financial statements. For example, they look for risk-reducing controls such as: Physical and digital controls (for example, locks, passwords, cameras and security systems),  Fraud training programs,  Job descriptions that call for segregation of duties and job...