What is a significant characteristic of a fraud risk assessment team?

A significant characteristic of a fraud risk assessment team is its composition of individuals with diverse knowledge and skills. This diversity brings varied perspectives and expertise to the table, allowing for a more comprehensive evaluation of potential fraud risks. Different team members can offer insights based on their specific areas of expertise—such as finance, operations, legal, human resources, and IT—enabling the team to identify vulnerabilities from multiple angles.

Team members with different backgrounds can also facilitate better communication and collaboration across departments, which is crucial for identifying and addressing fraud risks effectively. A well-rounded team is more equipped to assess the organization's risk environment, understand internal controls, and develop robust fraud prevention strategies.

In contrast, having a singular focus on finance might lead to missing fraud risks that extend beyond financial aspects. A team composed solely of upper management could lack the operational insights required for a thorough assessment, and a one-person team might not possess all the diverse skills necessary to identify and mitigate risks effectively.