Considering the targeted fraud risk assessment process, which of the following is most accurate?
1. The targeted fraud risk assessment process is centered on the likelihood (probability) and magnitude (dollar value) that fraud will occur.
2. The targeted fraud risk assessment process is centered on the likelihood (probability) and magnitude (dollar value) that fraud has occurred.
3. The targeted fraud risk assessment process is centered on the likelihood (probability) and magnitude (dollar value) that fraud has not occurred.
4. The targeted fraud risk assessment process is centered on the likelihood (probability) and magnitude (dollar value) that fraud may occur.