Which of the Following Is the Best Reason for Management

question 106

Multiple Choice

Which of the following is the best reason for management to emphasize fraud prevention and deterrence?

• A) It is often more effective and economical for companies to focus on fraud prevention and deterrence rather than on fraud detection.
• B) Collusion is impossible to detect.
• C) The AICPA requires management to implement a fraud prevention program.
• D) All of the above are equally valid reasons.

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Definitions:

Rufus Saxton

A Union Army general during the American Civil War known for his efforts to aid freed slaves and enforce policies of land redistribution.

Legal Title

A formal recognition or designation that establishes ownership or an official position within a legal framework.

Preliminary Emancipation Proclamation

An executive order issued by President Abraham Lincoln in 1862 during the American Civil War that declared the freedom of all enslaved people in Confederate-held territory starting January 1, 1863.

Union Victory

The success of the United States (the Union) over the Confederate States in the American Civil War, leading to the preservation of the Union and the abolition of slavery.