An internal auditor is assessing fraud risks and creating a fraud risk matrix for a particular branch location. Which of the following is most likely to be included in the matrix?
A.
Risks and relevant mitigating controls.
B.
Business processes and relevant fraud risks.
C.
Fraud scenarios and relevant risks.
D.
Opportunity, rationalization, and pressure to commit fraud.
In creating a fraud risk matrix, an internal auditor would most likely include fraud scenarios along with the relevant risks associated with each scenario. This approach allows for a detailed analysis of specific fraudulent acts that could occur and the risk levels pertaining to different areas of operation within the branch. This is essential for identifying and prioritizing fraud risks and helps in designing or enhancing controls to mitigate these risks effectively.
IIA guidance on fraud risk management.
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