Question

Good proactive fraud auditing involves four steps:

Identify fraud ______ ______Identify the fraud _______ of each _______Build ______ programs to proactively look for _______ and _______________ fraud ______ identified

Answer 1

Good proactive fraud auditing includes identifying fraud risk factors, assessing their likelihood, building audit programs to seek evidence of fraud, and addressing any identified risks to prevent and detect fraudulent activities in an organization.

Step-by-step explanation:

Good proactive fraud auditing involves a series of steps that aim to prevent and detect fraudulent activities within an organization. Broadly, these steps include:

• Identifying fraud risk factors
• Identifying the fraud likelihood of each factor
• Building audit programs to proactively look for evidence
• Investigating and addressing fraud risks identified

By meticulously performing each step, organizations can establish a robust system to minimize the potential for fraud. The process begins with recognizing the various risks that could lead to fraud. Once risks are identified, the organization assesses the likelihood of each, ranking them based on their potential impact. This assessment guides the creation of targeted audit programs designed to look proactively for signs of fraud within high-risk areas. Finally, should any risks be identified, it becomes imperative to investigate and address these promptly to mitigate damage and prevent future occurrences.