Question

3. Which of these is likely to increase the quality of the fraud risk assessment or help an organization understand and use a fraud risk assessment?

A. The fraud risk assessment was created by someone who kept the process very confidential.

B. The fraud risk assessment was very long and thorough, addressing all aspects of the business.

C. The fraud risk assessment was done with outsiders who were truth-seekers but had limited knowledge of the detail systems.

D. The fraud risk assessment made use of anonymous feedback mechanisms to permit anyone to add a risk factor to the process.

4. Best practices for fraud risk assessments include all but which of these?

A. Tailored to each organization (so you do not re-use a prior fraud risk assessment.)

B. Treats all fraud risks equally.

C. Identifies preventative and detective controls that are relevant to the risks assessed.

D. Includes brianstorming about financial reporting, corruption, and asset misappropriation.

Answer 1

3. Option D: The fraud risk assessment made use of anonymous feedback mechanisms to permit anyone to add a risk factor to the process.

Explanation: Feedback mechanisms will bring to the management any risk factor persisting in the organisation which strengthens the quality of fraud risk assessment or help an  organization understand and use a fraud risk assessment

4. Option A: Tailored to each organization (so you do not re-use a prior fraud risk assessment.)

Explanation: The other three are part of fraud risk assessment. Fraud risk assessment are not tailor made or specific to the organisation.