CFS Fraud Risk Assessment Frameworks 3

Question 1

The 'fraud triangle' is most useful in a fraud risk assessment for:

Accepted Answer

Understanding motivating conditions that enable fraud to occur

Answer

The fraud triangle (pressure, opportunity, rationalization) helps assessors understand the conditions that make individuals susceptible to committing fraud.

Question 2

In a fraud risk assessment, 'anti-fraud controls' are evaluated on which two dimensions?

Accepted Answer

Design effectiveness and operating effectiveness

Answer

Controls are evaluated on whether they are properly designed to address the risk (design effectiveness) and whether they are actually functioning as intended (operating effectiveness).

Question 3

Which scenario represents an example of 'control override' that a fraud risk assessment should specifically address?

Accepted Answer

A manager approving transactions that bypass the normal authorization limits

Answer

Management override of controls is a specific fraud risk where individuals with authority circumvent established controls, and it must be explicitly assessed.

Question 4

During a fraud risk assessment workshop, the facilitator asks participants to consider 'what if a trusted employee decided to steal?' This approach is known as:

Accepted Answer

Scenario analysis

Answer

Scenario analysis involves constructing hypothetical fraud situations to stress-test the organization's controls and identify vulnerabilities.

Question 5

According to ISO 31000, the fraud risk assessment process should be:

Accepted Answer

An iterative process integrated into organizational management

Answer

ISO 31000 emphasizes that risk management, including fraud risk assessment, should be iterative, dynamic, and integrated into the organization's ongoing management activities.

(CFS) Certified Fraud Specialist Practice Test

(CFS) Certified Fraud Specialist Practice Test

CFS Fraud Risk Assessment Frameworks 3