For effective fraud risk assessments, management should share what with auditors?

For effective fraud risk assessments, it is essential for management to share ownership and accountability for success with auditors. This collaboration fosters a culture of transparency and enhances the commitment to identifying and mitigating fraud risks. By establishing clear ownership, management and auditors can work together to ensure that the fraud risk assessment process is thorough and integrated into the overall risk management framework. This shared responsibility helps align objectives, promotes open communication, and supports a proactive approach to fraud prevention.

While decision-making authority over resources, a predefined budget, and access to external fraud cases may also be relevant in certain contexts, they are not as foundational to the effectiveness of the collaboration between management and auditors during the fraud risk assessment process. Effective ownership and accountability ensure that everyone involved is motivated and aligned toward achieving the objectives of the fraud risk assessment, ultimately leading to better identification and management of potential fraud risks.