Comprehensive and Detailed in Depth Explanation:
External fraud risk refers to schemes involving individuals or entities outside of the organization. Collusion between contractors is a prime example, as both parties are external vendors or service providers working together to defraud the organization. The other choices (A, B, D) involve internal actors and fall under occupational or financial reporting fraud.
[Reference:Fraud Examiners Manual, 2022, Fraud Prevention and Deterrence, Managing Third-Party Fraud Risks – Section 4.809., ===========, , ]
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