According to the Standards, Which of the Following Control Strategies

question 434

Multiple Choice

According to the Standards, which of the following control strategies would be the most effective in helping to prevent fraud?

• A) Have employees annually sign a code of conduct requiring that they report any known violations.
• B) Implement a whistleblower hotline where individuals can make anonymous phone calls to report fraudulent activities.
• C) Provide periodic fraud awareness training to employees and test their understanding of the training through online surveys.
• D) Conduct routine employee surveys to solicit their knowledge of fraud and unethical behavior within the organization.

---

Definitions:

Standard Costs

Standard costs are predetermined or estimated prices used to measure the efficiency of operations and the performance of a company against set benchmarks.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, including the balance sheet, income statement, and statement of cash flows.

Overhead Controllable Variance

The difference between the actual overhead incurred and the overhead that management expected or budgeted for, which is within their control.

Budgeted Costs

Estimated expenses planned for a set period of time, forming the basis of a budget for managing a business's or project's financial resources.