Which of the following actions by management would reduce an employee's opportunity to commit fraud?
Which of the following actions by management would reduce an employee's opportunity to commit fraud?
Establishing physical controls over company assets would reduce an employee's opportunity to commit fraud by creating barriers to unauthorized access or misuse of those assets. These controls act as preventive measures, directly limiting the possibilities for fraudulent activities.
It is about the opportunity - and no controls is an opportunity
Its general assumption - If you have done fraud then you will be by default terminated. Its not a control. Option A is a valid control
Because option A is a preventive control
Defining ethical behavior expectations in the company handbook is also a (soft) control to be deployed by management. But this remains theoretical. It's the effectiveness of controls that would reduce the possibility of fraud.
Could someone please explain why A and not D for example?
Identifying consequences of committing fraud doesn’t prevent opportunity