Page 275 - F1 - AB Integrated Workbook STUDENT 2018-19

Fraud, fraudulent behaviour, and their prevention in business

Measures to prevent and detect fraud

7.1 Measures to prevent and detect fraud

The principal strategy of any organisation to prevent and detect fraud is to establish
an effective internal control system.

The first step of any fraud prevention system is therefore to ensure that each of the
components of internal control are set up and working properly.

You should recall that internal control comprises five components: the control
environment, the risk assessment process, the information system, control activities
and monitoring of controls.

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