Fraud Risk Management Framework Principles and Roles
5 minutes
5 Questions
The Fraud Risk Management Framework, as outlined in the ACFE/COSO Fraud Risk Management Guide, is built on five interrelated principles that align with COSO's internal control components. Principle 1, Fraud Risk Governance, requires the organization to establish and communicate a fraud risk management program that demonstrates board and senior management commitment, often through a written fraud policy, a code of conduct, and defined oversight responsibilities. Principle 2, Fraud Risk Assessment, calls for a comprehensive, periodic assessment that identifies specific fraud schemes, evaluates their likelihood and significance, considers management override, and maps existing controls to residual risk. Principle 3, Fraud Control Activities, involves selecting, developing, and deploying preventive and detective controls—such as segregation of duties, authorization limits, data analytics, and reconciliations—to mitigate identified risks. Principle 4, Fraud Investigation and Corrective Action, establishes a process for receiving allegations (e.g., hotlines), conducting investigations, imposing consistent discipline, and remediating control weaknesses. Principle 5, Fraud Risk Management Monitoring Activities, ensures ongoing and separate evaluations assess whether the program is functioning and communicates deficiencies to those responsible for corrective action. Roles are distributed across the organization. The board of directors and audit committee set the tone at the top, approve the fraud policy, and oversee management's program and investigations of senior leaders. Senior management owns the program's design and implementation, allocates resources, and models ethical behavior. Middle management and process owners perform risk assessments for their areas and operate day-to-day controls. Internal audit provides independent assurance by evaluating fraud risk assessments and testing anti-fraud controls, reporting directly to the audit committee. Legal, compliance, human resources, and security functions support investigations, training, and discipline. All employees are expected to understand fraud risks, follow policies, and report suspicions. For a CFE, understanding these principles and roles is essential for designing, evaluating, and strengthening an organization's anti-fraud posture.
Fraud Risk Management Framework: Principles and Roles – A Complete CFE Exam Guide
1. Why This Topic Matters
Fraud Risk Management Framework Principles and Roles is a cornerstone topic within the Fraud Prevention and Deterrence section of the Certified Fraud Examiner (CFE) exam. The ACFE, together with COSO, published the Fraud Risk Management Guide (originally 2016, updated 2023), which has become the global benchmark for how organizations should structure their anti-fraud efforts. Examiners love this topic because it tests whether you understand fraud prevention as a system rather than a collection of isolated controls.
In practice, a CFE who understands the framework can evaluate whether an organization's anti-fraud program is complete, identify governance gaps, advise boards and executives, and assign accountability correctly after a fraud occurs. On the exam, you can expect several questions that ask you to identify the five principles, match principles to COSO components, and determine who is responsible for what within the organization.
2. What the Framework Is
A Fraud Risk Management (FRM) Framework is a structured, organization-wide approach for identifying, assessing, mitigating, detecting, investigating, and monitoring fraud risk. It is built upon the COSO Internal Control – Integrated Framework and translates COSO's five components of internal control into five fraud-specific principles.
The core idea is that fraud risk cannot be eliminated, but it can be managed to a level consistent with the organization's risk appetite and risk tolerance. The framework insists that this management be documented in a written fraud risk management policy, communicated throughout the organization, owned by senior management, overseen by the board, and independently evaluated by internal audit.
3. The Five Fraud Risk Management Principles
Memorize these in order, along with the COSO component each one corresponds to:
Principle 1 – Fraud Risk Governance (COSO: Control Environment)
The organization establishes and communicates a Fraud Risk Management Program that demonstrates the expectations of the board of directors and senior management and their commitment to high integrity and ethical values regarding managing fraud risk. Key elements include: tone at the top, a written anti-fraud policy, a code of conduct, assigned roles and responsibilities, fraud awareness training, conflict of interest disclosures, and a designated executive-level owner of the program.
Principle 2 – Fraud Risk Assessment (COSO: Risk Assessment)
The organization performs comprehensive fraud risk assessments to identify specific fraud schemes and risks, assess their likelihood and significance, evaluate existing fraud control activities, and implement actions to mitigate residual fraud risks. The assessment considers inherent risk (before controls) and residual risk (after controls), involves personnel from across the organization, is documented, and is repeated periodically or when circumstances change.
Principle 3 – Fraud Control Activities (COSO: Control Activities)
The organization selects, develops, and deploys preventive and detective fraud control activities to mitigate the risk of fraud events occurring or not being detected in a timely manner. Preventive controls stop fraud before it happens (segregation of duties, authorization limits, background checks). Detective controls uncover fraud that has already occurred (reconciliations, data analytics, surprise audits, hotlines). The framework emphasizes the growing role of data analytics and the need to design controls specifically for the schemes identified in Principle 2.
Principle 4 – Fraud Investigation and Corrective Action (COSO: Information and Communication)
The organization establishes a communication process to obtain information about potential fraud and deploys a coordinated approach to investigation and corrective action to address fraud appropriately and in a timely manner. This includes a whistleblower hotline, anti-retaliation protections, a documented investigation protocol, clear escalation paths, consistent disciplinary action, and communication of results to the appropriate parties. Note that many candidates expect investigation to be its own silo; the framework instead ties it to information and communication.
Principle 5 – Fraud Risk Management Monitoring Activities (COSO: Monitoring Activities)
The organization selects, develops, and performs ongoing evaluations to ascertain whether each of the five principles of fraud risk management is present and functioning, and communicates deficiencies in a timely manner to parties responsible for taking corrective action, including senior management and the board of directors. Monitoring includes ongoing evaluations (embedded in processes, often using analytics and continuous auditing) and separate evaluations (periodic reviews by internal audit or external parties).
Memory aid: Govern – Assess – Control – Investigate – Monitor (G-A-C-I-M). Think: Good Accountants Can Investigate Misconduct.
4. How the Framework Works in Practice
The five principles operate as a continuous cycle rather than a one-time project:
1. Establish governance: The board approves a fraud risk management policy; senior management assigns an executive owner (often a Chief Risk Officer, Chief Compliance Officer, or similar) and communicates expectations.
2. Assess risk: A cross-functional team brainstorms fraud schemes relevant to each business unit, rates likelihood and significance, maps existing controls, and determines residual risk against the organization's tolerance.
3. Deploy controls: Management designs or strengthens preventive and detective controls to address unacceptable residual risks, documenting the link between each identified scheme and the control that mitigates it.
4. Receive reports and investigate: Tips flow through hotlines and other channels; a consistent, documented investigation process determines facts, and corrective action (discipline, recovery, control remediation, referral to law enforcement) follows.
5. Monitor and report: Internal audit and management evaluate whether the program is working, measure key indicators, and report deficiencies upward so the cycle can begin again with improvements.
The framework also stresses that the program must be scaled to the size, complexity, industry, and risk profile of the organization. A small nonprofit and a multinational bank both need all five principles, but the depth and formality differ.
5. Roles and Responsibilities
This is the most heavily tested area. Learn the distinction between oversight, ownership, execution, and assurance.
Board of Directors
• Provides oversight of the fraud risk management program.
• Sets the tone at the top and approves the fraud risk management policy.
• Ensures management has implemented an effective program and receives regular reports on fraud risks, incidents, and program effectiveness.
• Has authority to engage outside experts and must be able to investigate allegations involving senior management.
• Often delegates detailed oversight to the audit committee, which oversees financial reporting, internal controls, the hotline, and internal and external auditors.
Senior Management (CEO and executive team)
• Has primary responsibility for designing, implementing, and maintaining the fraud risk management program. Management owns fraud risk.
• Communicates expectations to all employees and models ethical behavior.
• Assigns a specific executive to own the program and reports to the board on its status.
• Ensures adequate resources for prevention, detection, and investigation.
Management at All Levels
• Responsible for identifying fraud risks in their areas, implementing controls, and monitoring day-to-day operations.
• Serves as the first line in the Three Lines Model: operational management owns and manages risk.
Risk Management, Compliance, Legal, Human Resources, Security
• Form the second line: they set policies, provide expertise, facilitate the fraud risk assessment, manage the hotline, run training, handle disciplinary consistency, and advise on legal implications of investigations.
Internal Audit
• Forms the third line: provides independent, objective assurance that the program is designed properly and operating effectively.
• Evaluates fraud risk assessments and controls, performs fraud-related audits, may conduct or support investigations, and reports functionally to the audit committee.
• Internal audit does not own the fraud risk management program; ownership remains with management. Candidates frequently get this wrong.
Employees
• Must understand and comply with the code of conduct, complete fraud awareness training, sign periodic affirmations, disclose conflicts of interest, and report suspected fraud through available channels.
• Are the single most important source of fraud detection (tips), so their engagement is critical.
External Auditors
• Are not part of the organization's framework but have a responsibility under auditing standards (such as AS 2401 and ISA 240) to obtain reasonable assurance that financial statements are free of material misstatement due to fraud. Their role is limited to the financial statement audit; they do not design or own the company's anti-fraud program.
Certified Fraud Examiners
• May serve in any of these functions, help design and evaluate the program, facilitate risk assessments, conduct investigations, and advise boards. The CFE's role is advisory and investigative, not that of the accountable owner unless employed in a management capacity.
6. Key Supporting Concepts You Must Know
• Risk appetite vs. risk tolerance: appetite is the broad level of risk the organization is willing to accept; tolerance is the acceptable variation around specific objectives.
• Inherent vs. residual risk: residual risk is what remains after controls; the fraud risk assessment focuses on whether residual risk is acceptable.
• Likelihood and significance: the two dimensions used to rate each fraud risk; significance includes financial, reputational, legal, and operational impact.
• Fraud triangle and fraud scale: pressure, opportunity, and rationalization inform scheme identification; controls primarily attack opportunity.
• Preventive vs. detective controls: be able to classify any example instantly.
• Program documentation: the written fraud risk management policy should include roles, risk assessment process, reporting procedures, investigation protocol, corrective action standards, and monitoring approach.
• Fraud risk management program elements (ACFE): roles and responsibilities, commitment, fraud awareness, affirmation process, conflict disclosure, fraud risk assessment, reporting procedures and whistleblower protection, investigation process, corrective action, quality assurance, and continuous monitoring.
7. Exam Tips: Answering Questions on Fraud Risk Management Framework Principles and Roles
Tip 1 – Know the five principles cold and in order. Questions often ask which principle a described activity belongs to. A hotline, anti-retaliation policy, or investigation protocol points to Principle 4. A control self-assessment or internal audit review of the program points to Principle 5. A scheme brainstorming workshop points to Principle 2.
Tip 2 – Map principles to COSO components. If a question references the COSO Internal Control framework, match: Governance = Control Environment; Assessment = Risk Assessment; Control Activities = Control Activities; Investigation and Corrective Action = Information and Communication; Monitoring = Monitoring Activities.
Tip 3 – Watch the verbs: oversee vs. own vs. assure. The board oversees. Management owns and implements. Internal audit evaluates and provides assurance. If an answer choice says internal audit is responsible for implementing the fraud risk management program, it is wrong. If a choice says the board is responsible for day-to-day fraud risk management, it is wrong.
Tip 4 – 'Ultimately responsible' usually means senior management or the CEO, while 'oversight responsibility' means the board or audit committee. Read the question stem carefully for these cue words.
Tip 5 – Remember that employees are the top detection source. Questions about who is most likely to detect fraud or the most effective detection method typically point to tips from employees via hotlines, which reinforces the importance of Principle 4 communication channels.
Tip 6 – Distinguish preventive from detective controls. Segregation of duties, authorization, physical safeguards, and pre-employment screening are preventive. Reconciliations, analytics, surprise counts, and hotlines are detective. Some questions ask for the 'best' control; the framework favors a balanced mix, not reliance on one type.
Tip 7 – Residual risk is the target. When a question asks what management should compare to the organization's risk tolerance, the answer is residual risk, not inherent risk.
Tip 8 – The fraud risk assessment is not a one-time event. Any answer choice suggesting the assessment is performed once, performed only by internal audit, or performed without involving operational management is a distractor. It should be ongoing, cross-functional, documented, and refreshed when the business changes.
Tip 9 – External auditors are not the anti-fraud program. Choices that make external auditors responsible for preventing fraud or designing controls are incorrect. Their duty is reasonable assurance regarding material misstatement in the financial statements.
Tip 10 – Monitoring must report upward. Principle 5 specifically requires that deficiencies be communicated to those responsible for corrective action, including senior management and the board. An answer that stops at 'document the deficiency' without communication is incomplete.
Tip 11 – Eliminate absolutes. Answer choices using words like 'eliminate fraud risk entirely' or 'guarantee' are almost always wrong; the framework speaks of managing and mitigating fraud risk to an acceptable level.
Tip 12 – Use the scenario's clues. Many questions present a short scenario (for example, an organization with no written anti-fraud policy or no executive owner). Identify which principle is missing and select the answer that addresses that gap at the right organizational level.
8. Quick Review Summary
• The framework is based on COSO and consists of five principles: Governance, Assessment, Control Activities, Investigation and Corrective Action, and Monitoring.
• Management owns and implements; the board oversees; internal audit independently evaluates; all employees participate; external auditors have a separate, limited statutory role.
• Fraud risk is managed to an acceptable residual level consistent with risk appetite and tolerance; it is never eliminated.
• The program must be written, communicated, scaled to the organization, and continuously improved.
Master these relationships and the vocabulary of oversight, ownership, and assurance, and you will handle any CFE question on fraud risk management framework principles and roles with confidence.
Fraud Risk Management Framework Principles and Roles is a cornerstone topic within the Fraud Prevention and Deterrence section of the Certified Fraud Examiner (CFE) exam. The ACFE, together with COSO, published the Fraud Risk Management Guide (originally 2016, updated 2023), which has become the global benchmark for how organizations should structure their anti-fraud efforts. Examiners love this topic because it tests whether you understand fraud prevention as a system rather than a collection of isolated controls.
In practice, a CFE who understands the framework can evaluate whether an organization's anti-fraud program is complete, identify governance gaps, advise boards and executives, and assign accountability correctly after a fraud occurs. On the exam, you can expect several questions that ask you to identify the five principles, match principles to COSO components, and determine who is responsible for what within the organization.
2. What the Framework Is
A Fraud Risk Management (FRM) Framework is a structured, organization-wide approach for identifying, assessing, mitigating, detecting, investigating, and monitoring fraud risk. It is built upon the COSO Internal Control – Integrated Framework and translates COSO's five components of internal control into five fraud-specific principles.
The core idea is that fraud risk cannot be eliminated, but it can be managed to a level consistent with the organization's risk appetite and risk tolerance. The framework insists that this management be documented in a written fraud risk management policy, communicated throughout the organization, owned by senior management, overseen by the board, and independently evaluated by internal audit.
3. The Five Fraud Risk Management Principles
Memorize these in order, along with the COSO component each one corresponds to:
Principle 1 – Fraud Risk Governance (COSO: Control Environment)
The organization establishes and communicates a Fraud Risk Management Program that demonstrates the expectations of the board of directors and senior management and their commitment to high integrity and ethical values regarding managing fraud risk. Key elements include: tone at the top, a written anti-fraud policy, a code of conduct, assigned roles and responsibilities, fraud awareness training, conflict of interest disclosures, and a designated executive-level owner of the program.
Principle 2 – Fraud Risk Assessment (COSO: Risk Assessment)
The organization performs comprehensive fraud risk assessments to identify specific fraud schemes and risks, assess their likelihood and significance, evaluate existing fraud control activities, and implement actions to mitigate residual fraud risks. The assessment considers inherent risk (before controls) and residual risk (after controls), involves personnel from across the organization, is documented, and is repeated periodically or when circumstances change.
Principle 3 – Fraud Control Activities (COSO: Control Activities)
The organization selects, develops, and deploys preventive and detective fraud control activities to mitigate the risk of fraud events occurring or not being detected in a timely manner. Preventive controls stop fraud before it happens (segregation of duties, authorization limits, background checks). Detective controls uncover fraud that has already occurred (reconciliations, data analytics, surprise audits, hotlines). The framework emphasizes the growing role of data analytics and the need to design controls specifically for the schemes identified in Principle 2.
Principle 4 – Fraud Investigation and Corrective Action (COSO: Information and Communication)
The organization establishes a communication process to obtain information about potential fraud and deploys a coordinated approach to investigation and corrective action to address fraud appropriately and in a timely manner. This includes a whistleblower hotline, anti-retaliation protections, a documented investigation protocol, clear escalation paths, consistent disciplinary action, and communication of results to the appropriate parties. Note that many candidates expect investigation to be its own silo; the framework instead ties it to information and communication.
Principle 5 – Fraud Risk Management Monitoring Activities (COSO: Monitoring Activities)
The organization selects, develops, and performs ongoing evaluations to ascertain whether each of the five principles of fraud risk management is present and functioning, and communicates deficiencies in a timely manner to parties responsible for taking corrective action, including senior management and the board of directors. Monitoring includes ongoing evaluations (embedded in processes, often using analytics and continuous auditing) and separate evaluations (periodic reviews by internal audit or external parties).
Memory aid: Govern – Assess – Control – Investigate – Monitor (G-A-C-I-M). Think: Good Accountants Can Investigate Misconduct.
4. How the Framework Works in Practice
The five principles operate as a continuous cycle rather than a one-time project:
1. Establish governance: The board approves a fraud risk management policy; senior management assigns an executive owner (often a Chief Risk Officer, Chief Compliance Officer, or similar) and communicates expectations.
2. Assess risk: A cross-functional team brainstorms fraud schemes relevant to each business unit, rates likelihood and significance, maps existing controls, and determines residual risk against the organization's tolerance.
3. Deploy controls: Management designs or strengthens preventive and detective controls to address unacceptable residual risks, documenting the link between each identified scheme and the control that mitigates it.
4. Receive reports and investigate: Tips flow through hotlines and other channels; a consistent, documented investigation process determines facts, and corrective action (discipline, recovery, control remediation, referral to law enforcement) follows.
5. Monitor and report: Internal audit and management evaluate whether the program is working, measure key indicators, and report deficiencies upward so the cycle can begin again with improvements.
The framework also stresses that the program must be scaled to the size, complexity, industry, and risk profile of the organization. A small nonprofit and a multinational bank both need all five principles, but the depth and formality differ.
5. Roles and Responsibilities
This is the most heavily tested area. Learn the distinction between oversight, ownership, execution, and assurance.
Board of Directors
• Provides oversight of the fraud risk management program.
• Sets the tone at the top and approves the fraud risk management policy.
• Ensures management has implemented an effective program and receives regular reports on fraud risks, incidents, and program effectiveness.
• Has authority to engage outside experts and must be able to investigate allegations involving senior management.
• Often delegates detailed oversight to the audit committee, which oversees financial reporting, internal controls, the hotline, and internal and external auditors.
Senior Management (CEO and executive team)
• Has primary responsibility for designing, implementing, and maintaining the fraud risk management program. Management owns fraud risk.
• Communicates expectations to all employees and models ethical behavior.
• Assigns a specific executive to own the program and reports to the board on its status.
• Ensures adequate resources for prevention, detection, and investigation.
Management at All Levels
• Responsible for identifying fraud risks in their areas, implementing controls, and monitoring day-to-day operations.
• Serves as the first line in the Three Lines Model: operational management owns and manages risk.
Risk Management, Compliance, Legal, Human Resources, Security
• Form the second line: they set policies, provide expertise, facilitate the fraud risk assessment, manage the hotline, run training, handle disciplinary consistency, and advise on legal implications of investigations.
Internal Audit
• Forms the third line: provides independent, objective assurance that the program is designed properly and operating effectively.
• Evaluates fraud risk assessments and controls, performs fraud-related audits, may conduct or support investigations, and reports functionally to the audit committee.
• Internal audit does not own the fraud risk management program; ownership remains with management. Candidates frequently get this wrong.
Employees
• Must understand and comply with the code of conduct, complete fraud awareness training, sign periodic affirmations, disclose conflicts of interest, and report suspected fraud through available channels.
• Are the single most important source of fraud detection (tips), so their engagement is critical.
External Auditors
• Are not part of the organization's framework but have a responsibility under auditing standards (such as AS 2401 and ISA 240) to obtain reasonable assurance that financial statements are free of material misstatement due to fraud. Their role is limited to the financial statement audit; they do not design or own the company's anti-fraud program.
Certified Fraud Examiners
• May serve in any of these functions, help design and evaluate the program, facilitate risk assessments, conduct investigations, and advise boards. The CFE's role is advisory and investigative, not that of the accountable owner unless employed in a management capacity.
6. Key Supporting Concepts You Must Know
• Risk appetite vs. risk tolerance: appetite is the broad level of risk the organization is willing to accept; tolerance is the acceptable variation around specific objectives.
• Inherent vs. residual risk: residual risk is what remains after controls; the fraud risk assessment focuses on whether residual risk is acceptable.
• Likelihood and significance: the two dimensions used to rate each fraud risk; significance includes financial, reputational, legal, and operational impact.
• Fraud triangle and fraud scale: pressure, opportunity, and rationalization inform scheme identification; controls primarily attack opportunity.
• Preventive vs. detective controls: be able to classify any example instantly.
• Program documentation: the written fraud risk management policy should include roles, risk assessment process, reporting procedures, investigation protocol, corrective action standards, and monitoring approach.
• Fraud risk management program elements (ACFE): roles and responsibilities, commitment, fraud awareness, affirmation process, conflict disclosure, fraud risk assessment, reporting procedures and whistleblower protection, investigation process, corrective action, quality assurance, and continuous monitoring.
7. Exam Tips: Answering Questions on Fraud Risk Management Framework Principles and Roles
Tip 1 – Know the five principles cold and in order. Questions often ask which principle a described activity belongs to. A hotline, anti-retaliation policy, or investigation protocol points to Principle 4. A control self-assessment or internal audit review of the program points to Principle 5. A scheme brainstorming workshop points to Principle 2.
Tip 2 – Map principles to COSO components. If a question references the COSO Internal Control framework, match: Governance = Control Environment; Assessment = Risk Assessment; Control Activities = Control Activities; Investigation and Corrective Action = Information and Communication; Monitoring = Monitoring Activities.
Tip 3 – Watch the verbs: oversee vs. own vs. assure. The board oversees. Management owns and implements. Internal audit evaluates and provides assurance. If an answer choice says internal audit is responsible for implementing the fraud risk management program, it is wrong. If a choice says the board is responsible for day-to-day fraud risk management, it is wrong.
Tip 4 – 'Ultimately responsible' usually means senior management or the CEO, while 'oversight responsibility' means the board or audit committee. Read the question stem carefully for these cue words.
Tip 5 – Remember that employees are the top detection source. Questions about who is most likely to detect fraud or the most effective detection method typically point to tips from employees via hotlines, which reinforces the importance of Principle 4 communication channels.
Tip 6 – Distinguish preventive from detective controls. Segregation of duties, authorization, physical safeguards, and pre-employment screening are preventive. Reconciliations, analytics, surprise counts, and hotlines are detective. Some questions ask for the 'best' control; the framework favors a balanced mix, not reliance on one type.
Tip 7 – Residual risk is the target. When a question asks what management should compare to the organization's risk tolerance, the answer is residual risk, not inherent risk.
Tip 8 – The fraud risk assessment is not a one-time event. Any answer choice suggesting the assessment is performed once, performed only by internal audit, or performed without involving operational management is a distractor. It should be ongoing, cross-functional, documented, and refreshed when the business changes.
Tip 9 – External auditors are not the anti-fraud program. Choices that make external auditors responsible for preventing fraud or designing controls are incorrect. Their duty is reasonable assurance regarding material misstatement in the financial statements.
Tip 10 – Monitoring must report upward. Principle 5 specifically requires that deficiencies be communicated to those responsible for corrective action, including senior management and the board. An answer that stops at 'document the deficiency' without communication is incomplete.
Tip 11 – Eliminate absolutes. Answer choices using words like 'eliminate fraud risk entirely' or 'guarantee' are almost always wrong; the framework speaks of managing and mitigating fraud risk to an acceptable level.
Tip 12 – Use the scenario's clues. Many questions present a short scenario (for example, an organization with no written anti-fraud policy or no executive owner). Identify which principle is missing and select the answer that addresses that gap at the right organizational level.
8. Quick Review Summary
• The framework is based on COSO and consists of five principles: Governance, Assessment, Control Activities, Investigation and Corrective Action, and Monitoring.
• Management owns and implements; the board oversees; internal audit independently evaluates; all employees participate; external auditors have a separate, limited statutory role.
• Fraud risk is managed to an acceptable residual level consistent with risk appetite and tolerance; it is never eliminated.
• The program must be written, communicated, scaled to the organization, and continuously improved.
Master these relationships and the vocabulary of oversight, ownership, and assurance, and you will handle any CFE question on fraud risk management framework principles and roles with confidence.
Test mode:
CFE - Fraud Risk Management Framework Principles and Roles Example Questions
Test your knowledge of Fraud Risk Management Framework Principles and Roles
Question 1
Under the Fraud Risk Management Guide developed with COSO, the monitoring principle calls for ongoing evaluations to ascertain whether each of the five fraud risk management principles is present and functioning.
Question 2
In the Fraud Risk Management Guide developed with COSO, the fraud investigation and corrective action principle corresponds to the information and communication component of the COSO internal control framework.
Question 3
Under the COSO/ACFE fraud risk management framework, which principle calls for a communication process to obtain information about potential fraud and a coordinated approach to resolving it?
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