Question

True or false: Management should ensure that its own governance practices set the tone for fraud risk management and that the board of directors implements policies that encourage ethical behavior , including processes for employees , customers , vendors , and other third parties to report instances where those standards are not met. Management should appoint one executivelevel member of management to be responsible for coordinating fraud risk. True or False

Answer 1

Answer is True

In the context of fraud risk management, the new guidance identifies that the Management must implement governance policies which will encourage ethical behaviour for the employees. Moreover, a cross-departmental committee must be created for addressing fraud risk management.  An executive level member of mangament must be appointed who will be responsible for leading the whole committee and will ensure to coordinate with fraud risk management efforts.