During the audit committee meeting, where these matters were reported, the chairman of the audit committee was upset by the blatant and arrogant way the company was defrauded. The chairman of the audit committee stated that the auditors should have picked up on these activities in the year ago and felt that the assurance providers had to explain why the incidents were not detected during previous engagements.

Required

Provide the audit committee with a recommendation on how to implement a fraud risk management process indicating what should be done at each stage

Refer to to chapter $6$ of Assurance: An Audit Perspective, revised $1$st edition textbook, LexisNexis, $2023,$ authors : GP Coetzee, R du Bruyn, H Fourie, K Plant, J Olivier. South Africa