8.07

Risk Assessment

Principle 8 - Assess Fraud, Improper Payment, and Information Security Risk

Attribute 8.07 - As part of a risk assessment, management considers the risk of fraud that could impact the entity from both within the entity and from external parties. For example, external fraud risk may arise when an entity relies on service organizations' internal control systems to perform business processes for the entity. External parties that present fraud risk may also include program beneficiaries who fraudulently obtain benefits.