What is true regarding the internal auditor's responsibility for evaluating the risk of fraud?

The assertion that internal auditors may evaluate the risk of fraud provided they have sufficient knowledge to do so is valid because it aligns with the expanded role of internal auditors in organizations. Internal auditors are expected to have a thorough understanding of the processes and systems in place, including risk management practices. Evaluating the risk of fraud is an integral part of their responsibilities, which helps ensure that the organization’s risk management framework is robust and effective.

Internal auditors possess the necessary skills and training to assess fraud risk, as they are equipped to analyze operations, identify weaknesses, and evaluate controls that might allow fraud to occur. This role also involves looking at the organization’s culture and environment, enabling auditors to provide valuable insights into potential fraud scenarios. They can apply professional skepticism and utilize data analytics tools, further enhancing their ability to assess fraud risks effectively.

The other options suggest limitations or restrictions on the auditors' capabilities or responsibilities, which do not reflect the proactive role expected of internal auditors in identifying and assessing risks, including those related to fraud.