CFE – Fraud Prevention and Deterrence — Question 13

Joanna is leading the fraud risk assessment process for her organization. Which of the following considerations about the fraud risk assessment process is MOST ACCURATE and should be incorporated into Joanna's plans?

Answer options

• A. If the individuals conducting the fraud risk assessment believe that fraud could not happen within the organization, then the assessment process should reflect that belief.
• B. To ensure the independence of the team members, a consultant or another external party must conduct the fraud risk assessment.
• C. The fraud risk assessment can be conducted effectively by people inside or outside of the organization.
• D. The fraud risk assessment is most effective when management's influence on the process is limited.

Correct answer: B

Explanation

The correct answer is B, as having an external consultant helps maintain objectivity and independence in the assessment process, reducing potential biases. A is incorrect because the assessment should not be influenced by the belief that fraud is impossible. C is misleading because while both internal and external parties can conduct assessments, the emphasis on independence makes B the better choice. D is not entirely accurate since some management input may be necessary for context and support.