Which of the following would be the most effective fraud prevention control?
A.
Email alert sent to management for checks issued over $100,000.
B.
Installation of a video surveillance system in a warehouse prone to inventory loss.
C.
New hire training to explain fraud and employee misconduct.
D.
Daily report that identifies unsuccessful system log-in attempts
The Answer Is:
A
This question includes an explanation.
Explanation:
The most effective fraud prevention control among the listed options is an email alert sent to management for checks issued over $100,000. This control directly addresses a potential high-risk area (large transactions) and ensures that transactions of significant amounts are reviewed and approved by management, thus providing a strong deterrent and detection mechanism for fraudulent activity.
Common financial control practices and fraud prevention mechanisms in financial management.
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