Which of the following key activities related to fraud is the most important and cost-effective way to reduce losses from fraud?
A) Follow-up legal action
B) Early fraud detection
C) Fraud investigation
D) Fraud prevention

Question

Quizplus · Accepted Answer

Fraud prevention is the most important and cost-effective key activity related to fraud. It involves implementing policies, procedures, and controls that can deter potential fraudsters from committing fraud in the first place. By taking preventive measures, companies can avoid losses from fraud altogether, rather than having to take legal action or conduct investigations after the fact. Early detection and investigation are also important, but they are reactive measures, whereas prevention is a proactive approach to mitigating fraud risk.

Which of the Following Key Activities Related to Fraud Is