Fraud Risk Management
WHEN PEOPLE INDULGE IN FRAUD, they do not do so in the expectation of being caught and punished. They commit fraud because they believe they can get away with it. To implement effective fraud risk management, risks need to be examined from the potential fraudster's perspective. Where conventional risk assessment methodologies start with inherent risk and move toward limiting those risks by the quality of the system of internal controls, fraud-related assessment looks at the controls from the perspective of how can they be bypassed, who can bypass them, whether it is known, by whom, and how.
QUESTIONS: FILL IN THE BLANKS
Refer to Chapter 8 in Corporate Fraud and Internal Control: A Framework for Prevention.