The primary way that fraud is prevented and detected is through a proper system of:
A) checks and balances.
B) management directives.
C) internal control.
D) internal and external audits.

Question

Quizplus · Accepted Answer

Internal control is the best primary way to prevent and detect fraud. This includes policies, procedures, and processes put in place by management to safeguard company assets, ensure accurate financial reporting, and promote ethical behavior. Checks and balances, management directives, and internal and external audits are important components of internal control but not the primary way to prevent and detect fraud.

The Primary Way That Fraud Is Prevented and Detected Is