According to IIA guidance, which of re following actions should the internal auditor take immediately after having considered fraud scenarios and identified and prioritized fraud risks?
A.
Determine which controls if any are in place to mitigate the fraud risks
B.
Follow protocol for internal reporting and investigating fraud allegations
C.
Research frauds that nave occurred t\ similar organizations
D.
Incorporate the fraud risk assessment into the engagement plan
After considering fraud scenarios and identifying and prioritizing fraud risks, the next immediate action for the internal auditor is to determine which controls are in place to mitigate those risks. This step involves assessing the effectiveness of existing controls and identifying any gaps where controls may be insufficient or absent. Understanding the control environment is crucial for developing a comprehensive fraud risk assessment and ensuring that appropriate measures are in place to prevent and detect fraud.
Institute of Internal Auditors (IIA), Practice Guide – Internal Auditing and Fraud.
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit