ACCA BT · Chapter 8 · Question 9 of 11
Which of the following is the most effective measure for REDUCING THE OPPORTUNITY for employee fraud?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Implementing strong internal controls such as segregation of duties and authorisation limits
Explanation
Opportunity is reduced by making fraud difficult to commit and conceal, mainly through internal controls such as segregation of duties, authorisation and physical controls. Higher pay may reduce motive, while a code of ethics and recruitment checks are aimed mainly at the dishonesty element.
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