The process of conducting a fraud risk assessment is similar to that of conducting an enterprise risk assessment. The three key steps are:
1. Identify inherent fraud risks.
2. Assess impact and likelihood of the identified risks.
3. Develop responses to those risks that have a sufficiently high impact and likelihood to result in a potential outcome beyond management’s tolerance. When conducting a fraud risk assessment, it is important to involve individuals with varying knowledge, skills, and perspectives. The risk assessment process can take many different forms, the most common of which are interviews, surveys, and facilitated meetings. Regardless of the approach, it is important for individuals to remain open and creative to ensure the fraud risk universe is sufficiently comprehensive. Utilize the Knowledge Leader website and perform the following:
A. Authenticate to the Knowledge Leader website using your username and password.
B. Perform research and identify alternative models for conducting an effective fraud risk assessment. Compare and contrast these models. How do they differ? How are they similar?
C. Submit a brief write-up indicating the results of your research to your instructor.