What Is the Most Widely Recognized Way to Deter Fraud

question 35

Multiple Choice

What is the most widely recognized way to deter fraud?

• A) Encourage employees to report suspicious activity.
• B) Implement a good system of controls.
• C) Keep management involved in company procedures.
• D) Quickly punish employees found committing fraud.

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Definitions:

Exculpatory Clause

A contractual provision that relieves one party from liability for harm or damages caused during the execution of the contract.

Exculpatory Clause

A part of a contractual agreement that releases one party from liability for wrongful actions or damages.

Minor

A person under the legal age of adulthood, which varies by jurisdiction but is commonly 18 years old.

Contract Disaffirmance

The act of rejecting or declaring a contract void, often used in cases where one of the parties was incapacitated or a minor at the time of agreement.