Management can change business activities and processes prone to fraud in order to reduce incentives and opportunities for fraud. An example of this would be management outsourcing certain operations such as:

Question

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Cash collections and transfers are one of the most common processes prone to fraud. By outsourcing this function, management can bring in specialized expertise and oversight to reduce the opportunities for fraud. Outsourcing the other operations may also be helpful, but they may have less direct impact on reducing fraud incentives and opportunities.

Management Can Change Business Activities and Processes Prone to Fraud