The primary responsibility for preventing fraud in an organization lies with:
A)the audit committee of the board of directors.
B)the internal audit function.
C)the external auditor.
D)the organization's management.

Question

Quizplus · Accepted Answer

The primary responsibility for preventing fraud in an organization lies with the organization's management. Management is responsible for implementing a system of internal controls and ensuring that it is operating effectively to prevent and detect fraud. This includes establishing a code of ethics, providing fraud prevention training, conducting fraud risk assessments, and investigating any suspected fraud incidents. While the audit committee, internal audit function, and external auditor can provide additional oversight and recommendations, ultimately it is up to management to take an active role in preventing fraud.

The Primary Responsibility for Preventing Fraud in an Organization Lies