Which of the following is most likely to be effective in deterring fraud by upper level managers?
A)Internal controls
B)An enforced code of ethics
C)Matching documents prior to payment
D)Segregating custody of inventory from inventory record keeping

Question

Quizplus · Accepted Answer

Enforcing a code of ethics establishes clear expectations for ethical behavior and can create a culture where fraud is less likely to occur. While internal controls, matching documents, and segregating duties can all be effective measures, upper level managers may have the power to work around or manipulate these controls. A strong ethical culture, on the other hand, sets the tone from the top and can prevent fraudulent behavior before it even starts.

Which of the Following Is Most Likely to Be Effective