CFE – Fraud Prevention and Deterrence — Question 75

Cho, an internal auditor, and Pierre, a sales manager, have had several disagreements about the sales tactics used by Pierre's team. Cho has just been told that she will lead the company's fraud risk assessment. During the fraud risk assessment, Cho should:

Answer options

• A. Automatically designate the sales function as a high-risk area.
• B. Request that someone else perform the fraud risk assessment work that is related to the sales function's activities.
• C. Include her disagreements with Pierre as a factor when assessing the risk of fraud in the sales function.
• D. Confront Pierre about the disagreements and discuss how they increase the company's risk of fraud.

Correct answer: B

Explanation

The correct answer is B because it is prudent for Cho to separate her personal disagreements from the objective assessment of fraud risk. By delegating the assessment of the sales function to someone else, she ensures an unbiased evaluation. The other options involve either personal biases or confrontational approaches that could compromise the integrity of the assessment.