Question

The objective of a fraud risk assessment is to help management recognize factors that make an organization most vulnerable to fraud so that management can address those factors to reduce the exposure.a. Trueb. False

Answer 1

Answer:

True

Explanation:

Fraud risk assessment is the approach that induced to determine the risk to the business. it is the management practice that recognize the parameters that are more vulnerable to the fraud to the organisation.

This assessment worked against the factors like lack of supervision, lack of morality, lack of knowledge, etc

Answer 2

Answer: True

Explanation:

The Company's Risk Assessment Process

Identifying risks relevant to financial reporting objectives, including risks of material misstatement due to fraud ("fraud risks"); Assessing the likelihood and significance of misstatements resulting from those risks; and. Deciding about actions to address those risks.