Fraud is more prevalent in smaller businesses and not-for-profit organizations because it is more difficult for them to maintain
A) adequate separation of duties.
B) adequate compensation.
C) adequate financial reporting standards.
D) adequate supervisory boards.

Question

Quizplus · Accepted Answer

Smaller businesses and not-for-profit organizations often have limited resources and a smaller pool of employees, making it challenging to implement and maintain adequate separation of duties. This lack of separation can create opportunities for fraud to occur, such as when an employee has too much control over financial transactions or accounting records. Without proper checks and balances in place, fraudulent activities can go undetected for an extended period.

Fraud Is More Prevalent in Smaller Businesses and Not-For-Profit Organizations