Discuss the Role Internal Auditing Can Play in Fraud Prevention

question 67

Essay

Discuss the role internal auditing can play in fraud prevention and detection.

---

Definitions:

Purchases Discount

A reduction in the price of goods a company buys, typically for paying early or within a specified time period.

Accounts Payable

Liabilities owed by a business to its creditors for goods and services purchased on credit, which are due within a short period.

Debit Memorandum

A document issued by a buyer to a seller indicating returned goods or a request for a price reduction, increasing the buyer's accounts payable.

Sales Returns and Allowances

A reduction in sales revenue for returned goods or provided allowances due to dissatisfaction or defects.