Question

Which of the following is not a proactive way for a company to eliminate fraud opportunities?

a. Severely punishing fraud perpetrators.
b. Assessing risks.
c. Implementing appropriate preventive and detective controls.
d. Creating widespread monitoring of employees.

Answer 1

The correct answer is d. Creating widespread monitoring of employees. Companies should focus on implementing preventive measures and controls to eliminate fraud opportunities.

Step-by-step explanation:

The correct answer is d. Creating widespread monitoring of employees.

To eliminate fraud opportunities, companies can take several proactive measures:

1. Severely punishing fraud perpetrators: Companies can establish strict policies and consequences for fraud, such as termination and legal action, to deter employees from engaging in fraudulent activities.
2. Assessing risks: Companies can conduct risk assessments to identify vulnerable areas and implement appropriate preventive measures.
3. Implementing appropriate preventive and detective controls: Companies can establish internal controls, such as segregation of duties, regular audits, and access controls, to prevent and detect fraud.
4. Creating widespread monitoring of employees: While monitoring can help detect fraudulent activities, it is not considered a proactive way to eliminate fraud opportunities. Companies should focus on implementing preventive measures and controls.