Title Page
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Client / Site
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Location
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Conducted on
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Prepared by
Fraud Risk Assessment
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Is ongoing anti-fraud training provided to all employees of the organization?
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Do employees understand what constitutes fraud?
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Have the costs of fraud to the company and everyone in it — including lost profits, adverse publicity, job loss and decreased morale and productivity — been made clear to employees?
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Do employees know where to seek advice when faced with uncertain ethical decisions, and do they believe that they can speak freely?
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Has a policy of zero-tolerance for fraud been communicated to employees through words and actions?
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Is an effective fraud reporting mechanism in place?
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Have employees been taught how to communicate concerns about known or potential wrongdoing?
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Is there an anonymous reporting channel available to employees, such as a third-party hotline?
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Do employees trust that they can report suspicious activity anonymously and/or confidentially and without fear of reprisal?
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Has it been made clear to employees that reports of suspicious activity will be promptly and thoroughly evaluated?
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Do reporting policies and mechanisms extend to vendors, customers and other outside parties?
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To increase employees’ perception of detection, are the following proactive measures taken and publicized to employees?
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Is possible fraudulent conduct aggressively sought out, rather than dealt with passively?
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Does the organization send the message that it actively seeks out fraudulent conduct through fraud assessment questioning by auditors?
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Are surprise fraud audits performed in addition to regularly scheduled audits?
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Is continuous auditing software used to detect fraud and, if so, has the use of such software been made known throughout the organization?
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Is the management climate/tone at the top one of honesty and integrity?
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Are employees surveyed to determine the extent to which they believe management acts with honesty and integrity?
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Are performance goals realistic?
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Have fraud prevention goals been incorporated into the performance measures against which managers are evaluated and which are used to determine performance-related compensation?
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Has the organization established, implemented and tested a process for oversight of fraud risks by the board of directors or others charged with governance (e.g., the audit committee)?
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Are fraud risk assessments performed to proactively identify and mitigate the company’s vulnerabilities to internal and external fraud?
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Are strong anti-fraud controls in place and operating effectively, including the following?
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Proper separation of duties
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Use of authorizations
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Physical safeguards
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Job rotations
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Mandatory vacations
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Does the internal audit department, if one exists, have adequate resources and authority to operate effectively and without undue influence from senior management?
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Does the hiring policy include the following (where permitted by law)?
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Past employment verification
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Criminal and civil background checks
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Credit checks
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Drug screening
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Education verification
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References check
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Are employee support programs in place to assist employees struggling with addictions, mental/ emotional health, family or financial problems?
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Is an open-door policy in place that allows employees to speak freely about pressures, providing management the opportunity to alleviate such pressures before they become acute?
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Are anonymous surveys conducted to assess employee morale?
Completion
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Name and SIgnature of Risk Manager or Compliance Manager
