© D.L. Crumbley
Fraud Risk-Assessment Process
4. Assess likelihood of fraud
5. Assess significance of risk
More than inconsequential
6. Link antifraud controls – identify the control activities for fraud risks that are both more than likely to occur and more than inconsequential in amount.
7. Apply assessment results to the audit plan – consider and document the results of the fraud assessment when developing the audit plan.
Source: Jonny Frank, “Fraud Risk Assessments,” Internal Auditor, April, 2004, pp. 43-47