Policies and procedures designed to reduce the opportunities for fraud are often called:
A)internal controls
B)asset source transactions
C)accounting standards
D)financial systems

Question

Quizplus · Accepted Answer

Policies and procedures designed to reduce the opportunities for fraud are commonly referred to as internal controls. These controls are put in place to safeguard assets, ensure the accuracy and completeness of financial records, and promote compliance with laws and regulations. Internal controls can take various forms, such as segregation of duties, physical safeguards, and electronic controls, and should be tailored to the specific risks and needs of the organization. Asset source transactions are not commonly used to refer to fraud prevention measures, but rather describe types of cash inflows and outflows. Accounting standards and financial systems are also important components of a company's overall control environment, but they are not specific policies or procedures designed to prevent fraud.

Policies and Procedures Designed to Reduce the Opportunities for Fraud