The Best Way to Limit Opportunities for Committing Fraud in an Organization

question 45

Multiple Choice

The best way to limit opportunities for committing fraud in an organization is to:

• A) Establish clear vendor policies
• B) Create a tip hotline
• C) Maintain good internal controls
• D) Monitor employees

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Definitions:

General Ledger

A complete record of all financial transactions over the life of a company, organized into debits and credits across various accounts.

Capital Account

An account showing the net changes in property ownership and transfer of payment among countries for international transactions, or in a company's context, represents the stake of owners in the firm.

Revenue Accounts

Accounts that record the income generated from the sale of goods and services, before any expenses are subtracted.

Income Summary

A temporary account used in the closing process that summarizes a company's revenues and expenses for the accounting period.