Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 205

An internal auditor is assessing fraud risks and creating a fraud risk matrix for a particular branch location. Which of the following is most likely to be included in the matrix?

Answer options

• A. Risks and relevant mitigating controls.
• B. Business processes and relevant fraud risks.
• C. Fraud scenarios and relevant risks.
• D. Opportunity, rationalization, and pressure to commit fraud.

Correct answer: D

Explanation

The correct answer is D because the fraud risk matrix typically considers the key elements that lead to fraud, which are opportunity, rationalization, and pressure. Options A, B, and C, while relevant to fraud assessment, do not encapsulate the fundamental drivers of fraudulent behavior as effectively as option D does.