Possible Responses from Employees at ZINWA Holdings on How Fraud Risks are Identified, Evaluated, and Prioritized

At ZINWA Holdings, the identification, evaluation, and prioritization of fraud risks are carried out in accordance with the COSO Framework (Committee of Sponsoring Organizations of the Treadway Commission, 2017). Here are some possible responses from our employees highlighting the processes in place: 1. Employee A: "Our organization follows the COSO Integrated Framework, which emphasizes that management needs to consider the potential for fraud in their risk assessment. We conduct regular risk assessments to identify events or circumstances that could lead to fraud, and then evaluate the likelihood and magnitude of those risks, taking into consideration the different types and levels of fraud occurring within the organization (COSO, 2013)." 2. Employee B: "We prioritize our fraud risks based on their potential impact on the organization's objectives (COSO, 2013). One of our main priorities is to protect the shareholders' investment and enhance the trust of our regulators and customers. We assess the potential vulnerabilities in our financial reporting, operational, and compliance activities, ensuring that our risk mitigation efforts are consistent with the organization's risk appetite." 3. Employee C: "To identify and evaluate fraud risks, we regularly undergo internal and external audits to check for discrepancies and red flags (AICPA, 2021). Additionally, we encourage a culture of transparency, wherein we provide anonymous reporting channels for employees to report any observed fraudulent activities. This helps us in developing a robust feedback mechanism to actively identify potential fraud risks." 4. Employee D: "Our organization is committed to training our employees in identifying potential fraud risks and maintaining a high degree of ethical behavior (Winter, 2012). We hold regular trainings to educate our staff about the importance of fraud risk management and to ensure that they are aware of their individual roles in identifying and reporting suspected fraud activities." 5. Employee E: "ZINWA Holdings uses a combination of technology-enabled controls, human intelligence, and industry best practices to detect and mitigate fraud risks (Dewey, 2016). We have a strong IT policy in place which uses data analysis to identify red-flag activities, and this helps us monitor transactions and adapt to changing fraud patterns proactively." References: AICPA. (2021). Fraud Risk Management. [online] Available at: https://www.aicpa.org/interestareas/forensicandvaluation/resources/fraud-prevention-detection-response/fraud-risk-management.html [Accessed 20 Sep. 2021]. Committee of Sponsoring Organizations of the Treadway Commission. (2017). Enterprise Risk Management: Integrating with Strategy and Performance. [online] Available at: http://www.coso.org/Documents/2017-COSO-ERM-Integrating-with-Strategy-and-Performance-Executive-Summary.pdf [Accessed 20 Sep. 2021]. COSO. (2013). Internal Control - Integrated Framework. [online] Available at: http://www.coso.org/documents/coso%202013-icifr%2010_01.pdf [Accessed 20 Sep. 2021]. Dewey, B. (2016). Fraud Risk: The Importance of Data Analytics. The CPA Journal, pp.36-41. Winter, A. (2012). Fraud risk management: A small business perspective. Business Horizons, 55(1), pp. 73-78.