Which category in an FRA assesses the risks associated with avoiding proper costs and expenses through deception?

The category that focuses on the risks associated with avoiding proper costs and expenses through deception is centered around the concept of "costs and expenses avoided by fraud." This category highlights how individuals or organizations might manipulate financial statements or records to underreport costs or expenses, thereby inflating profits and misrepresenting financial health.

When expenses are systematically avoided or misrepresented, it can create a misleading picture of a company’s profitability and financial stability. This type of deceit can lead to severe repercussions for stakeholders, including investors and regulators, as it undermines the integrity of financial reporting.

Fraudulent financial reporting, while related, primarily pertains to the intentional distortion of financial data to influence how an entity's financial status is perceived, rather than focusing explicitly on the avoidance of costs and expenses. Misappropriation of assets generally pertains to the theft or misuse of an organization's assets, and revenue obtained by fraud is concerned with generating income through deceptive activities. Both of these categories do not specifically address the avoidance of expenses through deception, making the focus of the correct choice distinct and relevant to the question.