Unfortunately, the responsibility for preventing fraud is often seen in many organizations as belonging to:
A) The internal auditors
B) Corporate security
C) The external auditors
D) Managers
E) Someone else

Question

Quizplus · Accepted Answer

A: The internal auditors argue that their function is to evaluate controls and to improve operational efficiency. They will support a fraud investigation, but it isn't their primary responsibility.
B: Corporate security believes that their responsibility is an investigative role and that they are responsible for pursuing reported frauds, not deterring them. They don't focus on prevention or detection.
C: External auditors maintain that they can't detect fraud because it isn't their responsibility and because their materiality levels are too high
D: Managers view their primary responsibility as "running the business" and seldom acknowledge the possibility that fraud can occur in their organization

Unfortunately, the Responsibility for Preventing Fraud Is Often Seen in Many