Fraud Risk Assessment - 1083 Words

3/5/2013 | | Fraud Risk Assessment | | Fraud Risk Assessment | Fraud risk assessment is a process intended at proactively identifying and addressing an organization’s vulnerabilities to internal and external fraud. The fraud risk assessment is more of an art than a science. Every organization is different therefore what gets evaluated and what is assessed depends on the organization. Fraud risk assessments are an ongoing, continuous process rather than just an activity. A fraud risk assessment first starts with the identification and prioritization of fraud risks that exist in the business. The process evolves as the results of identified risks and then begins to drive education, communication, organizational†¦show more content†¦A good fraud risk assessment is one that fits within the culture of the organization. Fraud risk assessments should be sponsored and supported by the right people, encourages everyone to openly participate, and is generally embraced throughout the business as an important and valuable process. There are eight key elements to conducting a good fraud risk assessment. First, in the collaborative effort of management and auditors, a fraud risk assessment is most effective when management and auditors share ownership of the process and accountability for its success. Second, the right sponsor is someone who is willing to hear the goo d, bad, and ugly. The sponsor plays a key role in ensuring the success and effectiveness of a fraud risk assessment. Third, a good fraud risk assessment can be effectively conducted by people inside the organization or by using an external resource. It is critical that the people leading and conducting the fraud risk assessment remain independent and objective throughout the assessment process. Fourth, individuals conducting and leading the fraud risk assessment need to have a good working knowledge of business. To ensure a good working knowledge of the business, the fraud risk assessor should know the purpose of the business and how it operates. Fifth, the perceptions of people at all levels are important in the fraud risk assessment. Sixth,Show MoreRelatedThe Common Types Of Health Care Fraud1231 Words   |  5 Pages 1) What is the HIPPA definition of fraud? Give an example of fraud. a. The HIPPA definition of fraud is: i. â€Å"Knowingly, and willfully executes or attempts to execute a scheme...to defraud any healthcare benefit program or to obtain by means of false or fraudulent pretenses, representations, or promises any of the money or property owned by...any healthcare benefit program†. ii. 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