Question

Each year, the security team

at HTS Financials walks
through the facility to
determine if any physical
controls are missing that
would help prevent fraud. In
this way, they are
participating in

risk assessment.

Answer 1

Risk assessment

Step-by-step explanation:

The reason is that the risk assessment includes the assessment of variety of risks that the firm is facing and are threat to its long term success. The firm considers its potential risk attached with its financial recording because manipulation in financial records helps the management to fraud the investors. Suppose I am the auditor and you came with the annual financial reports and asked me to sign the annual report with green signal for $100,000 and I did signed the report. You had used this way to cover your fraud of $1,000,000 fraud. This means that their are several controls imposed by law and some these imposed laws are adopted by many organization to prevent mishappen and for that sake they continuously keep assessing their risks and this process is known as risk assessment.