FRAUD PREVENTION - Fraud Risk
Assessment Question and answers
100% correct 2025
What is the objective of a fraud risk assessment?
A. To establish the guilt or innocence of an employee suspected of
committing fraud
B. To assess the design and effectiveness of an organization's internal
controls over financial reporting
C. To help an organization identify what makes it most vulnerable to fraud
D. To provide an estimate of an organization's fraud losses - correct answer
✔C. To help an organization identify what makes it most vulnerable to fraud
Which of the following is TRUE about the fraud risk assessment process?
A. The assessment team must be perceived as independent and objective by
others for the assessment to be effective
B. Management and auditors should share ownership of the process and
accountability for its success
C. Conducting an effective fraud risk assessment requires thinking like a
fraudster
D. All of the above - correct answer ✔D. All of the above
Preventive anti-fraud controls include all of the following EXCEPT:
A. Hiring policies and procedures
B. Segregation of duties
C. Continuous audit techniques
D. Fraud awareness training - correct answer ✔C. Continuous audit
techniques
, The fraud risk assessment team should include:
A. Individuals who are credible
B. Individuals with diverse knowledge, skills, and perspectives
C. Individuals with experience gathering and eliciting information
D. All of the above - correct answer ✔D. All of the above
In addition to the specific risks related to each of the primary categories of
fraud, the fraud risk assessment team should consider:
A. Incentives for individuals to engage in fraud
B. Reputation risk
C. Risk to information technology
D. All of the above - correct answer ✔D. All of the above
Which of the following is TRUE regarding a fraud risk assessment?
A. The results should be used to develop plans to mitigate fraud risk
B. It can help management identify individuals who put the organization at the
greatest risk of fraud
C. It can be used to improve employee fraud awareness
D. All of the above - correct answer ✔D. All of the above
T or F: A fraud risk assessment report should contain a detailed,
comprehensive list of every assessment finding and all suggested responses
so that management can address each issue within the company, no matter
how small. - correct answer ✔False
Assessment Question and answers
100% correct 2025
What is the objective of a fraud risk assessment?
A. To establish the guilt or innocence of an employee suspected of
committing fraud
B. To assess the design and effectiveness of an organization's internal
controls over financial reporting
C. To help an organization identify what makes it most vulnerable to fraud
D. To provide an estimate of an organization's fraud losses - correct answer
✔C. To help an organization identify what makes it most vulnerable to fraud
Which of the following is TRUE about the fraud risk assessment process?
A. The assessment team must be perceived as independent and objective by
others for the assessment to be effective
B. Management and auditors should share ownership of the process and
accountability for its success
C. Conducting an effective fraud risk assessment requires thinking like a
fraudster
D. All of the above - correct answer ✔D. All of the above
Preventive anti-fraud controls include all of the following EXCEPT:
A. Hiring policies and procedures
B. Segregation of duties
C. Continuous audit techniques
D. Fraud awareness training - correct answer ✔C. Continuous audit
techniques
, The fraud risk assessment team should include:
A. Individuals who are credible
B. Individuals with diverse knowledge, skills, and perspectives
C. Individuals with experience gathering and eliciting information
D. All of the above - correct answer ✔D. All of the above
In addition to the specific risks related to each of the primary categories of
fraud, the fraud risk assessment team should consider:
A. Incentives for individuals to engage in fraud
B. Reputation risk
C. Risk to information technology
D. All of the above - correct answer ✔D. All of the above
Which of the following is TRUE regarding a fraud risk assessment?
A. The results should be used to develop plans to mitigate fraud risk
B. It can help management identify individuals who put the organization at the
greatest risk of fraud
C. It can be used to improve employee fraud awareness
D. All of the above - correct answer ✔D. All of the above
T or F: A fraud risk assessment report should contain a detailed,
comprehensive list of every assessment finding and all suggested responses
so that management can address each issue within the company, no matter
how small. - correct answer ✔False
