CFE – Fraud Prevention and Deterrence — Question 57

Which of the following is among the audit committee’s primary responsibilities related to fraud risk management?

Answer options

• A. Implementing the fraud risk management program
• B. Understanding how internal and external audit strategies address fraud risk
• C. Designing the fraud risk management program
• D. Punishing fraud perpetrators discovered through fraud risk management activities

Correct answer: A

Explanation

The correct answer, A, indicates that the audit committee is responsible for executing the fraud risk management program. Options B and C focus on understanding and designing the program, which are not primary responsibilities. Option D incorrectly implies that the committee is involved in punishment, which is not a typical function of the audit committee.