What should a fraud risk assessment evaluate regarding countermeasures?

The evaluation of countermeasures in a fraud risk assessment should focus on their cost-effectiveness and reasonableness. This means assessing whether the benefits of implementing specific countermeasures outweigh their costs and whether they are practical and feasible for the organization. Cost-effectiveness is crucial because organizations need to ensure that the money spent on fraud prevention is justified by the level of risk mitigation achieved. Reasonableness ensures that the measures implemented align with the organization's capabilities, size, and operational complexity.

Countermeasures that are too expensive might not be sustainable in the long run, while those that are unreasonable could lead to employee frustration or operational inefficiencies. A balanced approach ensures that fraud prevention measures are both effective and manageable within the organization's constraints.

The other choices reflect perspectives that do not provide a comprehensive assessment of countermeasures. For instance, solely evaluating their theoretical effectiveness does not consider practical implications or costs, and assessing their ability to eliminate all risks overlooks the reality that no system can completely eradicate fraud risk. Finally, while the impact on employee morale is an important aspect to discuss, it should not be the sole focus when determining the efficacy of fraud prevention measures. Ultimately, a thorough risk assessment will recognize the interplay between effectiveness, cost, and reasonableness when evaluating