CFE – Fraud Prevention and Deterrence — Question 4

Glenda, an internal auditor, and Bridgette, an accounts receivable clerk, have had several heated disagreements over accounting procedures and policies. Glenda has just been told that she will be the lead on the company’s fraud risk assessment. During the fraud risk assessment, Glenda should:

Answer options

• A. Confront Bridgette about the disagreements and discuss how they increase the department’s risk of fraud
• B. Have someone else to perform the fraud risk assessment work related to the accounts receivable department’s activities
• C. Include her disagreements with Bridgette as a factor when assessing the risk of fraud in the accounts receivable department
• D. Automatically designate the accounts receivable department as a high-risk area

Correct answer: B

Explanation

The correct answer is B because delegating the fraud risk assessment tasks helps maintain objectivity and reduces potential bias arising from their disagreements. Options A and C would likely lead to conflicts of interest and could undermine the assessment's integrity. Option D is inappropriate as it assumes risk without proper evaluation.