A System of Policies and Procedures to Prevent and Detect

question 133

Multiple Choice

A system of policies and procedures to prevent and detect illegal acts committed by managers,employees,customers,or business partners is called __________.

• A)Check and balances
• B)Regulatory compliance
• C)Internal fraud
• D)Fraud risk management

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Definitions:

Economic Environment

The combination of economic factors that impact the operation and performance of businesses, including inflation, employment rates, economic policy, and market demand.

Competitive Environment

The dynamic external system in which businesses compete against each other for market share and profitability.

Legal/Regulatory Environment

The framework of laws, regulations, and guidelines in which a business operates.

Sociocultural Environment

The environment that encompasses social and cultural factors which influence the behavior, beliefs, and practices of individuals within a society.