What should management do after completing a fraud risk assessment?

Management should focus on monitoring key internal controls and promoting engagement after completing a fraud risk assessment because this approach helps to create a proactive environment for fraud prevention and deterrence. Continuous monitoring ensures that existing controls remain effective and functional, and this vigilance can help identify potential vulnerabilities before they are exploited.

Engaging employees through training and communication about the importance of fraud prevention fosters a culture of integrity and ethical behavior within the organization. When employees are more aware of fraud risks and the organization’s commitment to combating fraud, they are less likely to engage in or overlook fraudulent behaviors.

By integrating the outcomes of the fraud risk assessment into the ongoing operational framework, management ensures that the assessment does not become just a one-time activity but a dynamic part of the organizational culture that adapts to new threats and changes in the business environment. This aligns with best practices in fraud prevention and creates a resilient organizational structure against fraud.