Is an electronic Fraud Risk Assessment legally binding?

Yes. Electronic records and signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes where adopted, provided the transaction meets intent, consent, attribution, and record retention requirements.

Do I need a notarized signature on the assessment?

Not typically. Fraud risk assessments are internal records; notarization is usually unnecessary unless required by contract or a specific regulatory condition. Check state or contract terms if external attestations are requested.

Can I correct errors after signing?

Corrections are handled via versioning: create an amended version with a clear change log and re-attest. Preserve prior versions for auditability and explain why the amendment was made.

How should signer identity be verified?

Use a combination of authenticated email, SMS code, or stronger methods (two-factor or KBA) for higher assurance. For regulated contexts, consider platforms that support advanced signer authentication and certificate-based signatures.

How long must I keep completed assessments?

Retain completed assessments based on applicable rules: at least 3 years for IRS-related records (IRC §6501(a)), 6 years for HIPAA-covered records (45 CFR §164.530(j)), and longer where state law or industry rules require it.

Who should sign the final assessment?

Signatories normally include the assessment owner (e.g., Compliance Officer), the process owner, and a senior officer such as the CFO or GC to certify accuracy and acceptance of remediation responsibilities.

Fraud Risk Assessment

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

FRAUD RISK ASSESSMENT AND CONSULTING AGREEMENT

This Fraud Risk Assessment and Consulting Agreement (the Agreement) is entered into as of between Organization Name: with principal address: (Organization), and Consultant Name: with principal address: (Consultant).

WHEREAS

WHEREAS, Organization seeks to identify, evaluate and mitigate risks of fraud, misappropriation, or financial irregularity affecting its operations and assets; and

WHEREAS, Consultant represents that it possesses the qualifications and experience to perform fraud risk assessment, testing, and advisory services necessary to accomplish the objectives set forth herein; and

WHEREAS, the parties desire to set forth the scope, terms, payment and confidentiality obligations governing the Consultant's performance of the fraud risk assessment engagement.

SCOPE OF WORK

Description of services (Scope of Work)

The Consultant shall, at minimum, perform: risk identification and prioritization; review of internal controls and segregation of duties; sample testing of transactions; data analytics to detect anomalies; interviews of key personnel; and preparation of a written assessment report containing findings, recommendations and an action plan. Deliverables and timelines shall be those described in the Scope of Work field above.

ASSESSMENT METHODOLOGY

Select methods to be employed (check all that apply):

Interviews of personnel and management Document and policy review Data analytics and exception testing

Control design and operating effectiveness testing Other (describe below)

RISK IDENTIFICATION AND ANALYSIS

For each identified risk, provide a concise title and evaluate likelihood, impact and existing controls. Complete at least the top three areas of concern.

Risk Item 1 — Title Likelihood Impact Existing Controls Residual Risk Recommendation Risk Item 2 — Title Likelihood Impact Existing Controls Recommendation Risk Item 3 — Title Likelihood Impact Existing Controls Recommendation

SCORING AND PRIORITIZATION

Overall risk score (0-100): Priority level:

ACTION PLAN

Recommended actions and responsible parties

EVIDENCE AND ATTACHMENTS

List documents, data extracts and other supporting materials attached or to be provided:

PAYMENT TERMS

Consultant shall be compensated as follows. Fees are exclusive of applicable taxes unless otherwise stated.

Total Fee Payment Schedule Late Fee

Invoices are due within the payment terms set forth above. Organization shall not withhold payment except for disputes made in good faith, and any undisputed past-due amount shall accrue the late fee stated above until paid in full.

TERM AND TERMINATION

This Agreement commences on Start Date: and terminates on End Date: unless earlier terminated in accordance with this section.

Either party may terminate this Agreement for convenience upon written notice to the other party delivered at least days prior to the effective date of termination. Either party may terminate for cause upon failure by the other to cure a material breach within thirty (30) days after written notice specifying the breach.

CONFIDENTIALITY

Each party shall maintain the confidentiality of information disclosed by the other party that is marked confidential or reasonably understood to be confidential given the nature of the information and the circumstances of disclosure. Consultant shall not disclose assessment findings, work papers, data analyses, or related materials to third parties without Organization's prior written consent except as required by law. The obligations in this paragraph shall survive termination of this Agreement for a period of years.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its choice-of-law principles.

ENTIRE AGREEMENT

This Agreement, together with any attachments and the Scope of Work set forth above, constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, representations and warranties, whether written or oral. Any amendment must be in writing and signed by authorized representatives of both parties.

CERTIFICATION

The Consultant certifies that the assessment will be conducted in accordance with professional standards for fraud risk assessments and that findings and recommendations will reflect the Consultant's good faith, independent judgment. The Organization acknowledges that assessments are limited in scope and that identification of all instances of fraud cannot be guaranteed.

ASSESSOR AND REVIEWER DETAILS

Primary Assessor Name Assessor Title / Role Reviewer / Approver Name Reviewer Title / Role

Organization Printed Name:

By:

Date:

Consultant Printed Name:

By:

Date:

What a Fraud Risk Assessment Is and When It’s Used

A Fraud Risk Assessment is a structured document used to identify, evaluate, and document potential fraud exposures in an organization, process, or transaction lifecycle. It inventories fraud schemes, maps controls, rates likelihood and impact, and produces prioritized recommendations for mitigation. The assessment supports audit, compliance, and enterprise risk-management programs and is commonly used by internal audit, compliance, finance, and legal teams. When completed digitally, the assessment record should capture signer identity, timestamps, and an audit trail to preserve evidentiary quality under U.S. e-signature law such as ESIGN and state UETA statutes.

Why Performing a Fraud Risk Assessment Matters

Conducting a Fraud Risk Assessment clarifies where control gaps and exposure points exist, informs targeted controls, reduces financial loss, and strengthens regulatory compliance reporting. It produces an auditable record for boards and examiners.

Who Typically Prepares and Reviews This Assessment

Teams that create and review fraud risk assessments are usually cross-functional and include compliance, internal audit, finance, and legal.

Internal Audit teams — lead the assessment, validate controls, and present findings to the audit committee.
Compliance and Risk Management — map regulatory risks and recommend remediation actions aligned with policy.
Finance and Operations — supply transactional data, process maps, and control test evidence to quantify exposure.

Completed assessments are circulated to senior management, the board, and retained for evidence of due diligence.

Primary Users and Signatories

Compliance Officer

A compliance officer or fraud prevention lead usually owns the assessment process, coordinates interviews, consolidates evidence, and attests to accuracy. That individual certifies findings to senior management and regulators where required.

Chief Financial Officer

The CFO or delegated finance executive reviews financial exposure sections, approves remediation budgets, and signs off on control changes that affect financial reporting or tax positions.

Core Sections Every Professional Assessment Should Include

A complete Fraud Risk Assessment contains standardized sections to make results comparable over time and defensible to auditors and examiners.

Scope & Objectives

Define the business units, processes, transactions, and time period covered. State assessment objectives, such as detection improvements, control testing, or regulatory responses.

Risk Inventory

List identified fraud schemes and failure modes with brief descriptions and mappings to process steps where they are most likely to occur.

Likelihood & Impact Ratings

Use a consistent rating scale (e.g., Low/Medium/High) to score each risk for probability and financial or reputational impact; document scoring rationale.

Existing Controls

Document current prevention, detection, and response controls; include control owner, control frequency, and evidence location for testing.

Control Gaps & Remediation

Prioritize control weaknesses, estimate remediation complexity and cost, and assign owners with target completion dates.

Audit Trail & Certification

Include signatures, timestamps, data provenance, and version history; retention instructions and the certifying signatory attest to accuracy.

Step-by-Step: Completing a Fraud Risk Assessment

Follow a structured sequence to collect evidence, score risks, and produce an auditable final record.

01

Plan: Define scope, stakeholders, timeline, and data requirements for the assessment.
02

Collect: Gather process maps, transaction samples, control descriptions, and prior incident reports.
03

Assess: Identify risks, assign likelihood and impact scores, and document scoring rationale.
04

Report: Produce findings, assign remediation actions, and obtain required sign-offs and versioned signatures.

How Digital Completion and Routing Typically Works

Digital workflows streamline evidence capture, signature collection, and retention while preserving an audit trail for each action.

Upload Document: The owner uploads the assessment template and supporting files to the secure platform.
Place Fields: Define text fields, rating picklists, and signature locations for each reviewer and approver.
Route for Review: Assign reviewers in sequence or parallel and include conditional routing where applicable.
Capture Audit Trail: The system records timestamps, signer identity, IP address, and version history for evidence.

Configuring an Online Assessment Workflow

Set up fields and access controls to balance usability and evidentiary quality.

Field	Configuration
Signature Order	Sequential or parallel routing; choose sequential for attestations.
Authentication Method	Email + optional SMS or knowledge-based authentication for higher assurance.
Conditional Fields	Show remediation items only when a control gap is scored High.
Retention Policy	Attach retention duration and archival location to completed records.

Technical Considerations for eSubmission and Signing

Choose a platform that supports secure storage, a detailed audit trail, and compliance needs such as HIPAA or 21 CFR Part 11 where applicable.

File Formats: PDF, DOCX, and XLSX supported
Integrations: CRM and document storage connectors
Security: TLS in transit; AES-256 at rest

Ensure the chosen provider can export a tamper-evident signed PDF and maintain an access log and certificate of completion for compliance review.

Typical Timelines and Internal Deadlines

Set clear deadlines for each stage to ensure timely remediation and reporting to leadership or regulators.

Initial Planning:

Start within 2 weeks of project approval

Evidence Collection:

Complete within 4–6 weeks depending on scope

Scoring & Review:

Allow 1–2 weeks for stakeholder review cycles

Remediation Targets:

Assign 30/60/90-day targets based on severity

Executive Sign-off:

Obtain final attestation upon remediation plan approval

Key Milestones from Assessment Start to Closure

A typical assessment proceeds through discrete milestones; track each to closure for governance and audit purposes.

01

Kickoff Meeting

Align scope, stakeholders, and data sources with the project team.

02

Data Collection Complete

Confirm transaction samples, logs, and control evidence are available for review.

03

Control Testing

Record test results and exceptions for each control owner.

04

Final Reporting

Deliver the written report, remediation plan, and signed certification to leadership.

Common Pitfalls to Avoid When Preparing an Assessment

Incomplete evidence links or inaccessible files that prevent auditors from verifying control tests, causing delays.
Ambiguous scoring criteria; inconsistent likelihood or impact ratings reduce comparability across business units.
Missing signatory authority or unsigned remediation commitments that undermine governance and escalate regulatory risk.
Failure to record version history and timestamps, weakening the evidentiary value of the completed assessment.

Consequences of an Inadequate or Incorrect Assessment

Financial Loss: Undetected fraud can increase loss exposure

Regulatory Scrutiny: Compliance failures trigger examinations

Legal Liability: Board or officer liability claims possible

Reputation Damage: Public trust can decline rapidly

Operational Disruption: Remediation can divert staff and budget

Audit Findings: Repeat findings lead to escalation

eSignature Pricing and Feature Comparison Relevant to Fraud Risk Assessments

Compare basic pricing and feature flags when selecting a signing platform for assessments; signNow is listed first per vendor conventions.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	Varies
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA available)	Vendor option	Vendor option	Vendor option	Vendor option
Envelope Cap	No cap	100 envelopes/user/year	Vendor limits	Vendor limits	Vendor limits

Practical Examples of Fraud Risk Assessment Use

Real-world scenarios show how assessments reduce exposure and document remediation.

Healthcare Audit

A hospital compliance team performed a targeted assessment after unusual billing patterns were flagged

Risk scoring prioritized patient-billing reconciliation failures
The assessment produced corrective steps, documented approvals, and an auditable trail for the next regulator visit.

Financial Services Review

A regional bank conducted an enterprise fraud review focused on wire transfers

Controls testing revealed weak dual-approval coverage on high-value transfers
Management implemented conditional approvals and documented training, reducing exceptions in the subsequent quarter.

Frequently Asked Questions About Fraud Risk Assessments

Answers to common procedural and legal questions about completing, signing, and retaining fraud risk assessments.

Need help? Contact support

Is an electronic Fraud Risk Assessment legally binding?
Yes. Electronic records and signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes where adopted, provided the transaction meets intent, consent, attribution, and record retention requirements.
Do I need a notarized signature on the assessment?
Not typically. Fraud risk assessments are internal records; notarization is usually unnecessary unless required by contract or a specific regulatory condition. Check state or contract terms if external attestations are requested.
Can I correct errors after signing?
Corrections are handled via versioning: create an amended version with a clear change log and re-attest. Preserve prior versions for auditability and explain why the amendment was made.
How should signer identity be verified?
Use a combination of authenticated email, SMS code, or stronger methods (two-factor or KBA) for higher assurance. For regulated contexts, consider platforms that support advanced signer authentication and certificate-based signatures.
How long must I keep completed assessments?
Retain completed assessments based on applicable rules: at least 3 years for IRS-related records (IRC §6501(a)), 6 years for HIPAA-covered records (45 CFR §164.530(j)), and longer where state law or industry rules require it.
Who should sign the final assessment?
Signatories normally include the assessment owner (e.g., Compliance Officer), the process owner, and a senior officer such as the CFO or GC to certify accuracy and acceptance of remediation responsibilities.

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