What is an example of a physical control aimed at reducing fraud risk?

A physical control aimed at reducing fraud risk involves implementing tangible measures that help protect assets and ensure that processes are followed correctly. An asset register is a comprehensive list of all assets owned by an organization, which serves as a record-keeping mechanism. It helps in tracking, monitoring, and safeguarding company assets, making it difficult for any fraudulent activity to go unnoticed. By maintaining and regularly updating an asset register, an organization can quickly identify discrepancies or unauthorized activities relating to its assets.

In contrast, performance reviews, open office layouts, and flexible job descriptions are more related to policies and structural approaches rather than physical means of protection or control. While these practices can contribute to a positive work environment and enhance accountability, they do not specifically fulfill the definition of physical controls that directly secure assets and allow for oversight against fraudulent actions.