CIMA BA3 · Chapter 8 · Question 9 of 10
Who has the primary responsibility for preventing and detecting fraud in a company?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) The directors and management of the company
Explanation
The directors are responsible for running the company, including putting in place controls to prevent and detect fraud. The external auditor must consider the risk of material misstatement due to fraud, but this does not transfer the responsibility to them.
More Control of accounting systems MCQs
- Q1What is the main purpose of internal controls in an accounting system?
- Q2Which of the following is an example of segregation of duties?
- Q3What is the main role of an external auditor of a limited company?
- Q4Which of the following statements about internal audit is correct?
- Q5A cashier steals money received from customer A, then uses money later received from customer B to clear customer A's account, and so on…