The continuous assessment by management to assess the potent

The continuous assessment by management to assess the potential for fraud and other risks is referred to as: Multiple Choice the control environment information and communication. monitoring activities. risk assessment

Solution

Risk Assessment

The continous assessment by management to assess the potential for fraud and other risks are referred to as Fraud risk Assessment. It is the determination of quantitaive or qualitative estimate of risk which relates to well defined situation and a recognized threat. Management should assess as the fraud risk can come both from external as well internal sources. Risks and frauds that are present before the management action are described as inherent risk. The main objective of risk assessment is to help a company identify what makes it vulnerable to fraud.