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In identifying the inherent fraud risks that could apply to the organization, the fraud risk assessment team should discuss:
Suggested Answer: D
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Scope of Fraud Risk Assessment:
The fraud risk assessment team must consider various factors, including:
A . Incentive programs:Can create pressures that lead to fraud.
B . Management override of controls:A key risk for fraud occurring despite existing safeguards.
C . Risks to reputation:Fraud incidents can harm the organization's public image.
Comprehensive Discussion:
Considering all these factors ensures a thorough identification of inherent fraud risks.
Conclusion:The fraud risk assessment team should discuss all listed items.
24 comments · newest first
CA
Carmelina
3 days ago
Reputation risks can destroy a company. Definitely D.
JO
Joesph
8 days ago
Management override is a huge risk too. Can't ignore that.
TA
Tabetha
13 days ago
Agreed! Incentives can lead to risky behavior.
BE
Bernadine
18 days ago
I think D is the best choice. All factors matter.
JU
Judy
24 days ago
I feel A and B are key. They directly impact behavior.
CH
Charlesetta
29 days ago
D covers everything. Can't ignore any risk.
AM
Amalia
1 month ago
C is crucial. Reputation damage can be severe.
NA
Nan
1 month ago
A is important too. Incentives can lead to fraud.
GE
Gearldine
1 month ago
Agreed, management override is a big risk.
JA
Jaclyn
2 months ago
I think D is the best choice. All factors matter.
FL
Flo
2 months ago
Incentive programs can really drive bad behavior.
TA
Tamra
2 months ago
I disagree, A and B are more critical.
NA
Na
2 months ago
Surprised that reputation risks are often overlooked.
JO
Joseph
2 months ago
Management override is a huge risk.
AN
An
3 months ago
Definitely all of the above!
DO
Dong
3 months ago
Surprised that reputation risk is often overlooked!
CA
Caren
3 months ago
Really? All of the above seems a bit much.
AJ
Aja
3 months ago
What about the impact on employee morale?
VE
Vesta
3 months ago
I agree, all of these factors matter!
TE
Tennie
3 months ago
Definitely need to consider management override.
JU
Justine
4 months ago
I definitely remember discussing the need to consider all these factors in a fraud risk assessment, so I think the answer is D.
RO
Rosalyn
4 months ago
I feel like all of these options are important, but I’m uncertain if we covered how incentive programs specifically lead to fraud.
AD
Adolph
4 months ago
I remember a practice question that mentioned reputation risks, but I can't recall if it was part of a broader discussion on fraud risks.
CH
Chi
5 months ago
I think we talked about management's override of controls in class, but I'm not sure how it relates to incentive programs.