Fraud Risk Assessment:

Fraud risk assessment is a systematic process undertaken by organizations to identify, analyze, and mitigate the risk of fraud within their operations. It involves evaluating various factors that could increase the likelihood of fraudulent activities occurring and their potential impact on the organization's objectives, assets, and reputation. The assessment typically includes analyzing internal controls, reviewing past incidents of fraud or misconduct, assessing the organizational culture, and considering external factors such as industry trends and regulatory requirements. By conducting a comprehensive fraud risk assessment, organizations can implement effective controls and measures to prevent, detect, and respond to fraudulent activities.

Objective Question:

In fraud risk assessment, which of the following factors is NOT typically considered when evaluating the risk of fraud within an organization?

A$)$ Internal controls

B$)$ Organizational culture

C$)$ Industry trends

D$)$ Financial performance