Fraud Risk Assessments (FRAs) Brochure
1
FRAUD RISK ASSESSMENT We peel back the layers for you to see beyond the grey areas What is Fraud Risk Assessment (FRA)? An assessment program that focuses on identifying fraud-related exposures within an organization. Why is FRA be important? It is integral to an effective fraud prevention program within any organization. Traditional risk assessments are not enough. They only link risks to an organization’s key objectives. Therefore, fraud can be overlooked during a traditional risk assessment if it is not considered a core company objective. How is an FRA conducted? At CFE International Consultancy Group Pte Ltd, we use a 7-step approach to ensure a thorough, effective assessment. The 7-step approach is briefly outlined below: 1. ORGANIZE THE ASSESSMENT Internal Audit can integrate the FRA process into an organization’s existing business cycle or establish a separate cycle for this purpose. 2. DETERMINE AREASS TO ASSESS To be effective, an FRA must be conducted at a company-wide, business-unit, and significant-account level. 3. IDENTIFY POTENTIAL SCHEMES & SCENARIOS Organizations can commit fraud, or be defrauded in myriad ways. Identifying an organization’s universe of potential fraud risks represents a critical stage in the FRA. 4. ASSESS LIKELIHOOD OF FRAUD FRAs consider the likelihood that a particular fraud will occur. The best source regarding specific risks is often the employees at the unit being assessed. 5. ASSESS SIGNIFICANCE OF RISK The significance of fraud risks, with a more than remote likelihood of occurring, is assessed. 6. LINK ANTI-FRAUD CONTROLS Control activities for fraud risks are identified, possible weaknesses of the controls are also considered. 7. APPLY ASSESSMENT RESULTS TO AN AUDIT PLAN The FRA results are documented and considered when an organization’s audit plan is being developed. An FRA can be viewed as the corporate equivalent of a visit to the dentist: Senior management and the board may anticipate pain, yet they experience relief if the assessment determines that risks are under control. Effective FRAs not only provide peace of mind but can also have a positive impact on an organization’s bottom line. CALL TODAY FOR A COMPLIMENTARY TRIAL ASSESSMENT! NO OBLIGATIONS Please call Cheryl (+65 6222 9862) or Joanne (+65 6222 9863) or email [email protected] for more information ORGANIZED & ASSESSED BY THE ONLY PRACTICISING CERTIFIED FRAUD EXAMINER (CFE) FIRM IN THE ASIA PACIFIC.
description
Fraud Risk Assessments (FRAs) are specialized audits focused on identifying fraud-related exposures within an organisation. At CFE International Consultancy Group, we use a 7-step approach to develop a thorough, effective assessment plan to assess a company's fraud risk. CFE International Consultancy Group (CFE ICG) Pte Ltd is the only practicing Certified Fraud Examiner (CFE) firm in the Asia Pacific. Our experts have been trained, assessed and licensed by the Association of Certified Fraud Examiners (ACFE) in Texas, USA, which is the largest professional fraud examiner organization in the world today.
Transcript of Fraud Risk Assessments (FRAs) Brochure
FRAUD RISK ASSESSMENT We peel back the layers for you to see beyond the grey areas
What is Fraud Risk Assessment (FRA)? An assessment program that focuses on identifying fraud-related exposures within an organization. Why is FRA be important? It is integral to an effective fraud prevention program within any organization. Traditional risk assessments are not enough. They only link risks to an organization’s key objectives. Therefore, fraud can be overlooked during a traditional risk assessment if it is not considered a core company objective. How is an FRA conducted? At CFE International Consultancy Group Pte Ltd, we use a 7-step approach to ensure a thorough, effective assessment. The 7-step approach is briefly outlined below: 1. ORGANIZE THE ASSESSMENT Internal Audit can integrate the FRA process into an organization’s existing business cycle or establish a separate cycle for this purpose. 2. DETERMINE AREASS TO ASSESS To be effective, an FRA must be conducted at a company-wide, business-unit, and significant-account level. 3. IDENTIFY POTENTIAL SCHEMES & SCENARIOS Organizations can commit fraud, or be defrauded in myriad ways. Identifying an organization’s universe of potential fraud risks represents a critical stage in the FRA. 4. ASSESS LIKELIHOOD OF FRAUD FRAs consider the likelihood that a particular fraud will occur. The best source regarding specific risks is often the employees at the unit being assessed. 5. ASSESS SIGNIFICANCE OF RISK The significance of fraud risks, with a more than remote likelihood of occurring, is assessed. 6. LINK ANTI-FRAUD CONTROLS Control activities for fraud risks are identified, possible weaknesses of the controls are also considered. 7. APPLY ASSESSMENT RESULTS TO AN AUDIT PLAN The FRA results are documented and considered when an organization’s audit plan is being developed.
An FRA can be viewed as the corporate equivalent of a visit to the dentist: Senior management and the board may
anticipate pain, yet they experience relief if the assessment determines that risks are under control.
Effective FRAs not only provide peace of mind but can also have a positive impact on an organization’s bottom line.
CALL TODAY FOR A COMPLIMENTARY TRIAL ASSESSMENT! NO OBLIGATIONS
Please call Cheryl (+65 6222 9862) or Joanne (+65 6222 9863) or email [email protected] for more information
ORGANIZED & ASSESSED BY THE ONLY PRACTICISING CERTIFIED FRAUD EXAMINER (CFE) FIRM IN THE ASIA PACIFIC.
