The primary responsibility for preventing fraud in an organization lies with
A) The audit committee of the board of directors.
B) The internal audit staff.
C) The external auditor.
D) The organization's management.

Question

Quizplus · Accepted Answer

The primary responsibility for preventing fraud in an organization lies with the organization's management. Management is responsible for establishing a framework of internal controls that deter and detect fraud, as well as implementing policies and procedures that enable the identification and investigation of possible fraudulent activities. While the audit committee, internal audit staff, and external auditor can provide oversight and guidance in fraud prevention, the ultimate responsibility lies with management.

The Primary Responsibility for Preventing Fraud in an Organization Lies