The primary way that fraud is prevented and detected is through a proper system of:
A)ethical standards and a code of ethics.
B)policies developed by upper management.
C)internal control.
D)internal and external audits.

Question

Quizplus · Accepted Answer

Internal control is the primary system used to prevent and detect fraud. It involves processes and procedures designed to ensure the reliability of financial reporting, compliance with laws and regulations, and the effectiveness and efficiency of operations. This includes measures such as segregation of duties, proper authorization and approval processes, physical safeguards, and monitoring of activities. While ethical standards, codes of ethics, policies, and audits are also important, they are typically not sufficient on their own to prevent or detect fraud.

The Primary Way That Fraud Is Prevented and Detected Is