The Primary Responsibility for Preventing Fraud in an Organization Lies

question 16

Multiple Choice

The primary responsibility for preventing fraud in an organization lies with

• A) The audit committee of the board of directors.
• B) The internal audit staff.
• C) The external auditor.
• D) The organization's management.

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Definitions:

Locus of Control

A psychological concept referring to how strongly people believe they have control over the situations and experiences affecting their lives.

Attribution

The process by which individuals explain the causes of behavior and events, attributing them to internal dispositions or external situations.

Perceptual Activities

are processes through which individuals interpret and make sense of their sensory input from the environment.

Person's Actions

The deeds or acts carried out by an individual, which may reflect their intentions, decisions, or reaction to outside forces.