System and Organization Controls (SOC) 2/CC3 Risk Assessment/16 of 61
CC3.3COSO Principle 8: The entity considers the potential for fraud in assessing risks to the achievement of objectives
Control family: CC3 Risk Assessment
Control description
The following points of focus highlight important characteristics relating to this criterion: Points of focus specified in the COSO framework:
• Considers Various Types of Fraud — The assessment of fraud considers fraudulent reporting, possible loss of assets, and corruption resulting from the various ways that fraud and misconduct can occur.
• Assesses Incentives and Pressures — The assessment of fraud risks considers incentives and pressures.
• Assesses Opportunities — The assessment of fraud risk considers opportunities for unauthorized acquisition, use, or disposal of assets, altering the entity’s reporting records, or committing other inappropriate acts.
• Assesses Attitudes and Rationalizations — The assessment of fraud risk considers how management and other personnel might engage in or justify inappropriate actions.