M/C Fraud deterrence begins:
A) with the employer's internal controls.
B) in the employee's mind.
C) with the fraud examination.
D) with regulatory and legal actions such as PCAOB Auditing Standard No. 5, AICPA Statement on Auditing Standards SAS No. 99, and the Sarbanes-Oxley Act.

Question

Quizplus · Accepted Answer

Fraud deterrence begins in the employee's mind, as it is fundamentally about influencing behavior to prevent fraud from occurring in the first place. Effective deterrence involves creating an environment where employees understand the consequences of fraudulent actions and are thus dissuaded from committing fraud.

M/C Fraud Deterrence Begins