Occupational fraud involves intentionally using one's position for personal gain through the misuse of organizational resources. It can occur in any organization and at any level, not just among lower-level employees. While auditing can help detect fraud, preventing it requires a comprehensive approach that includes strong internal controls, ethical leadership, and regular monitoring.

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Occupational Fraud

Question 41

Multiple Choice

Occupational fraud:

A) Is the use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization's resources.
B) Occurs in only a few organizations and generally involves minor amounts.
C) Will be prevented when companies employ an auditor.
D) Is committed only by lower-level employees.

Correct Answer: