<u>Reason - Fraud prevention is more cost-effective than fraud detection or investigation:</u>
"Prevention is better than cure" - Prevention of fraud reduces the cost that the investigation or detection of fraud incurs losses.
The fraud preventive measures that can be taken by the company are as follows,
- Implementing detective controls
- Employing external and internal auditors (to issue independent checks based on the performance)
The managers and the employees of the business entity are the persons who likely detect the fraud. So, it is important that they are been educated regarding the prevention and monitoring of the fraud prevalence and fraud handling measures.
Answer:
The correct answer is letter "A": forward vertical integration.
Explanation:
Forward integration happens when a business takes over functions that were originally performed by its partners in the supply chain. Forward integration can be horizontal and vertical. Forward horizontal integration takes place when one company takes over another at the same level of the supply chain. In forward vertical integration, a firm takes charge of the businesses located farther down the supply chain.
The AICPA is required to adopt ethics standards that are at least as restrictive as the IESBA rules.
Answer: Option D
<u>Explanation:</u>
IESBA stands for the international ethics standards board for the accountants. As clear from the full form, this board performs the activities of setting up the ethics which the accountants need to follow while they are performing their work of making the accounts.
This body is not a national level but established at an international level. The other body which is the AICPA also needs to adopt the rules which are as restrive as the ethics of the IESBA.