Question

The responsibility for preventing fraud is often seen as belonging to: (choose one)

The internal auditors

Corporate security

The external auditors

Managers

Answer 1

Answer is Managers

The primary responsibility for prevention of fraud is with managers of the firm. Mangers along with management team are responsible for implementing a good internal control system in place to ensure frauds do not take place in organisation. The purpose of Internal audit by internal auditors is to check whether the internal control system is working effectively or not in the organisation. The external auditors are not responsible for preventing frauds. They audit the controls and give an opinion on the same. Corporate security is not responsible for prevention of frauds. Hence answer is Managers.