CFE – Fraud Prevention and Deterrence — Question 11

Which of the following is NOT included in the five fraud risk management principles described in Fraud Risk Management Guide, a joint publication by COSO and the ACFE?

Answer options

• A. Performing comprehensive fraud risk assessments to identify specific fraud schemes
• B. Developing preventive and detective fraud control activities
• C. Communicating the expectations of these governing the fraud risk management program
• D. Eliminating all known fraud vulnerabilities in the organization

Correct answer: C

Explanation

The correct answer is C because it reflects a communication expectation rather than a core principle of fraud risk management. Options A, B, and D focus on actionable strategies that are integral to managing fraud risks, while C does not align with the fundamental principles outlined in the guide.