The most effective measure to prevent management fraud is to establish a professional internal audit staff that periodically checks up on management and reports directly to the audit committee of the board of directors.

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Having a professional internal audit staff that reports directly to the audit committee of the board of directors can help detect and prevent management fraud. This staff can provide an independent and objective analysis of the company's accounting and financial reporting systems and identify any suspicious activities or irregularities. In addition, establishing a strong corporate culture that prioritizes ethical behavior and accountability can also help prevent management fraud.

The Most Effective Measure to Prevent Management Fraud Is to Establish