In the context of a fraud risk assessment, which of the following best defines residual fraud risk?
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A
The risk of fraud that exists before any controls or mitigation strategies are implemented.
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B
The risk that a fraud scheme will go undetected by the internal audit department.
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C
The risk of fraud that remains after management has implemented internal controls to mitigate identified threats.
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D
The total financial impact a company would suffer if a specific fraud scheme were to occur.