Three of the various objectives of an internal control program are:
A) fraud prevention, fraud deterrence, and fraud mitigation.
B) fraud prevention, fraud deterrence, and fraud detection.
C) fraud deterrence, fraud detection, and fraud prosecution.
D) fraud elimination, fraud deterrence, and fraud mitigation.

Question

Quizplus · Accepted Answer

The three objectives of an internal control program are to prevent fraud from occurring, deter individuals from committing fraud, and detect fraud that has already occurred. Option B correctly identifies all three objectives. Option A is incorrect because fraud mitigation is not a separate objective from prevention and deterrence. Option C is incorrect because prosecution is not an objective of an internal control program; it is a potential outcome of detecting and deterring fraud. Option D is incorrect because fraud elimination is an unrealistic goal – the focus should be on preventing, deterring, and detecting fraud, rather than trying to eliminate it completely.

Three of the Various Objectives of an Internal Control Program