* Composition of Fraud Risk Assessment Teams:
* Effective teams require diverse perspectives, skills, and experiences to identify and address fraud risks comprehensively.
* Why C is Incorrect:
* Limiting team size to three individuals restricts diversity and may not provide sufficient expertise for a thorough assessment. Larger teams, with a range of skills, are often necessary.
* Why Other Options are Correct:
* A:Experience in gathering information is critical for the effectiveness of the team.
* B:Including external experts adds objectivity.
* D:Diverse perspectives enhance the assessment's scope.
References for All Questions:
* ACFE Fraud Examination Guide and Standards.
* ISA standards on audit procedures and unpredictability.
* Fraud risk assessment guidelines from COSO and ACFE resources.