Fraud Risk & Audit Management

In our modern-day risk landscape, companies must navigate uncertainties in the external internal environment. Though no company likes the possibility of bad actors committing fraud, external and internal risk of fraud remains a pressing — and costly — concern.Fortunately, identifying fraud risks and mitigating them doesn’t have to be difficult. With a fraud risk assessment, companies can understand the overall risk universe.

A fraud risk assessment is aimed at proactively addressing a business’s vulnerabilities to internal and external fraud. Though types of fraud vary by business line, internal frauds include embezzlement and misappropriation of assets, while external frauds include hacking and theft of proprietary information.Commonly, perpetrators commit fraud due to weaknesses in internal controls. When used to understand these weaknesses and the risk environment, a fraud risk assessment can help management formulate a mature risk management plan.

We tailor a fraud risk assessment to an organization’s unique industry and operations. Management and managers responsible for each department should perform a risk assessment by examining the organization’s exposure to fraud risk events. Because changes in the internal and external environment are certain, the assessment should be refreshed regularly to mitigate risks to an acceptable level.

Our fraud risk assessment feature the following components:

1. Description of Fraud Risks
2. Likelihood of Occurrence
3. Significance to the Organization
4. Identification of Anti-Fraud Controls
5. Assessment of Control Effectiveness
6. Fraud Risk Response
7. Responsible Person
8. Monitoring Activities