This assignment consist of one main post and reply to two classmates. See instructions below.Review the two videos at the following site:
https://www.acfe.com/content.aspx?id=4294975038&terms=risk%20assessment.
Discuss the implications for organizations and what questions they should be asking regarding the fraud risk assessment.
This assignment consist of one main post and replies to two classmates. See instructions below. Instructions for main post (Around 200 words) Review the two videos at the following site: https://www.acfe.com/content.aspx?id=4294975038&terms=risk%20assessment. Discuss the implications for organizations and what questions they should be asking regarding the fraud risk assessment. Instructions for the two classmate responses (150 words each) Please, respond to the below two classmate main posts. (Please, the responses need to be a discussion, not an evaluation. You can agree with them and add/comment about their response.) Classmate post #1: Felicia Smith Fraud risk assessment is “a process aimed at proactively identifying and addressing an organization’s vulnerabilities to both internal and external fraud” (Wells, 2014, Pg. 369). The purpose behind fraud risk assessments is for organizations to determine what the weaknesses are and how to fix or prevent them, regarding fraud risk. Analyzing the fraud risks associated with a business can mean some intense research both inside and outside of the company, “knowing your enemy means recognizing the threats of fraud that are relevant to your organization…it’s important not only to identify the risks that are relevant specifically to your internal business environments, but also potential threats that can come from outside your business” (Beauregard, 2009, Para. 4). Fraud risk is unavoidable and can occur in any business despite how protected a company may seem. The devastation that it can cause is untold, people could lose jobs, face criminal charges, and the business itself could close. Therefore, it is vital that each business continually initiates a fraud risk assessment in their business to determine if there are any discrepancies that need to be fixed. I thought that the video was very helpful with explaining what types of things that businesses need to keep in mind while implementing a fraud risk assessment. For example, it is important to know the background of a company to determine what are the best ways to protect it. Additionally, I think that it is a great idea to trace a business process from start to finish to discover any anomalies or strengths that need to be fixed or that could be applied to another aspect of the business. Some questions that the company could be asking regarding fraud risk assessment include how do the employees perceive management to be, does management display an open and honest persona, does the company provide ample opportunities for people to discuss good and bad things about the business, does the company address problems appropriately, does the company have enough preventative measures in place to prevent fraud, what is the biggest risks of fraud in this company, and what can the company do to minimize fraud risk? Beauregard, Olivier. (2009). Demystifying the Fraud Assessment Process. Fraud Magazine. Retrieved From: https://www.fraud-magazine.com/article.aspx?id=473 Wells, J.T. (2014). Principles of Fraud Examination. (4th ed.). Hoboken, NJ. John Wiley & Sons, Inc. Classmate post # 2: Dayana Alvarez Each organization is responsible for maintaining a risk free environment within its walls. Management must ensure through efficient risk management strategies that employees are taking precautions to avoid frauds or schemes within the company. If the proper measures such as effective internal controls, separation of duties, excellent leadership, and realistic financial goals are being proposed and taken into consideration, a company should be less likely to be a victim in a fraud or scheme. But, if none of that exists it opens the door to many illegal activities or transactions within the organization. As mentioned in the video, the culture quotient is a critical factor for employees’ behavior in the company. If the leaders are humbled and behave in an ethical way, employees are more prone to trust them and their decisions which in turn will help employees make the right choices when facing a difficult task or decision. I believe that having a sense of unity between the company’s leadership and the employees will help to have an efficient fraud risk assessment, thus decreasing the chances for the company to become a victim of fraud. Also, a great guide for the company to follow is to create and implement policy and procedure program that answers questions about frauds and schemes and how they will have zero tolerance for such activities regardless of their position within the company. Reference: The Fraud Examiner. (2010). ACFE. Retrieved from https://www.acfe.com/content.aspx?id=4294975038&terms=risk%20assessment.https://www.acfe.com/content.aspx?id=4294975038&terms=risk%20assessment.