Principles of Fraud Examination, 4th Edition

CHAPTER 14

FRAUD RISK ASSESSMENT

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

14-1	Describe the factors that influence an organization's vulnerability to fraud
14-2	Explain the difference between preventive and detective controls
14-3	Define and explain the objective of a fraud risk assessment
14-4	Discuss why organizations should conduct fraud risk assessments
14-5	Understand the characteristics of a good fraud risk assessment
14-6	Describe considerations for developing an effective fraud risk assessment
14-7	List actions that should be taken to prepare a company for a fraud risk assessment
14-8	Understand the steps involved in conducting a fraud risk assessment and how to apply a framework to it
14-9	Describe approaches to responding to an organization's residual fraud risks
14-10	Name important considerations when reporting the results of a fraud risk assessment
14-11	List actions management should take using the results of a fraud risk assessment
14-12	Explain how a fraud risk assessment can inform and influence the audit process

OVERVIEW

For the organization's fraud risks to be effectively managed, they must first be identified using a formal risk assessment. If performed and used correctly, a fraud risk assessment can be a powerful proactive tool in the fight against fraud for any business. Additionally, regulators, professional standard-setters, and law enforcement authorities continue to emphasize the crucial role ...