Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place

Create an environment in which employees feel safe challenging management ' s decisions

implement two separate sets of ethics policies, one for management and one for employees

All of the above

Employees who steal do not commonly display lifestyle or behavioral warning signs of their misdeeds.

An increase in employee wealth is always a sign of fraud that should be investigated.

Managers should only observe employees for signs of suspicious behavioral or lifestyle changes if they can do so without the employees ' knowledge.

Managers should be instructed to observe employees for any unusual lifestyle improvements, such as an unexplained increase in luxury purchases.

Transparency

Responsibility

Fairness

Accountability

Management ' s risk appetite and the organization ' s ability to meet its objectives.

The organization ' s internal controls and its financial reporting model.

Management ' s risk appetite and relevant regulatory requirements.

The organization ' s objectives and available resources.

Avoidance of differences of opinion on all material matters

Independence of mental attitude and avoidance of conflicts of interest

Prioritization of desires for personal gain over the interests of clients

Ability to conceal errors to preserve the reliability of the work performed

The program takes human and cultural factors into account.

The program is static and consistent, even during times of organizational change.

The program facilitates continuous improvement.

The program is customized and proportionate to the organization ' s operations and objectives.

Overseeing the organization ' s fraud risk management activities.

Monitoring and proactively improving the fraud risk management program.

Performing and regularly updating the fraud risk assessment.

Implementing the fraud risk management program throughout the organization.

Corporate compliance

Fraud risk management

Risk assessment

Internal control

Identity theft is both the most common and costliest category of occupational fraud.

Asset misappropriation schemes are the most common category of occupational fraud.

Corruption schemes are the costliest category of occupational fraud.

Financial statement fraud schemes are the most common category of occupational fraud.

Reflect the assessment team ' s subjective perspective regarding the risks identified.

Contain a detailed, comprehensive list of every assessment finding.

Focus on the findings that will make the most impact on the company ' s fraud risk management efforts.

Include a complete list of recommended actions for management to take to address all identified risks.