ACT 510 Colorado State University Global Campus Week 3 Fraud Deterrence PAper

Option #1: Fraud Deterrence, Detection, and Prevention

Assume that you are the fraud expert for a large Fortune 500 company. In a recent meeting with the executive committee, one of the officers explains that the fraud prevention program, which teaches managers and employees how to detect and report fraud, costs the company $150,000 a year. The officer then explains that it is a waste of time and money for the company to educate employees and managers about fraud. “Isn’t it the responsibility of the auditors to detect fraud?” he questions. As the fraud expert of the company, you are asked by the president to explain why managers and employees should be educated in the detection of fraud.

Prepare a detailed response to the following questions regarding the scenario above. Be sure to prepare in well-developed paragraphs (do not use a question-answer format).

  • What would you tell the committee about why it is important to train managers and employees in fraud detection?
  • After you have explained to the committee why it is important to train management and employees, the president asks you about effective ways to involve employees and managers in the prevention and detection of fraud. What would you tell the president?
  • What could be an effective means of deterrence in the organizatio

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