Washington Mutual, was a US Bank which went bankrupt at the end of 2008 due to a number of risk management issues. Read the case noted in the link below and answer the following questions: https://www.thebalancemoney.com/washington-mutual-how-wamu-went-bankrupt-3305620 a. Discuss in a paragraph format the importance of an internal risk assessment and auditing process in relation to this case.

Washington Mutual, was a US Bank which went bankrupt at the end of 2008 due to a number of risk management issues. Read the case noted in the link below and answer the following questions: https://www.thebalancemoney.com/washington-mutual-how-wamu-went-bankrupt-3305620 a. Discuss in a paragraph format the importance of an internal risk assessment and auditing process in relation to this case.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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you have been engaged as a consultant for Zenith Bank Ghana LTD. Draw up a comprehensive fraud risk assessement that would incorporate a formal process of accountability and reponsibility going forward for Zenith Ghana Ltd.
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Washington Mutual, was a US Bank which went bankrupt at the end of 2008 due to a number of risk management issues. Read the case noted in the link below and answer the following question: https://www.thebalancemoney.com/washington-mutual-how-wamu-went-bankrupt-3305620 Discuss the importance of an internal risk assessment and auditing process in relation to this case.
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An external audit undertaken on the operational risk department of Zenith Bank Ghana Ltd identified the absence in any formal system or procedures to prevent, detect and respond to all fraud types. Whilst there was an external fraud department, it operated in a reactionary manner and the risks of potential fraud events around the bank were not assessed and more importantly, no plans were in place to mitigate against potential fraud events. This absence of assessment of controls exposed the bank to the risk of material losses. The maturity and experience of personnel in addressing such an action was a challenge to the bank and consultancy assistance was sought to address this audit finding. Required: You have been engaged as a consultant for Zenith Bank Ghana LTD. Draw up a comprehensive fraud risk assessment that would incorporate a formal process of accountability and responsibility going forward for Zenith Ghana Ltd.