Final answer:
The primary ways to detect fraud early do not typically include watching employees based on honesty test results but involve accidental discovery, finding financial anomalies, and being alerted by reports of suspicious activity. Furthermore, internal reporting by employees is key but can be hindered by organizational culture.
Step-by-step explanation:
Among the options given, watching employees whose honesty test results were suspicious is NOT a primary way fraud can be detected early. This approach could be seen as prejudicial and may not necessarily lead to the detection of fraud. Rather, the primary ways of detecting fraud include: by accident, where someone stumbles upon evidence of fraud unintentionally; finding anomalies in the financial records, which involves analyzing accounting documents for irregularities; and when someone reports suspicious activity, which could be through whistleblowing or other reporting mechanisms.
It's important to highlight that experts in the field often have a good sense of potential issues or mistakes before a detailed analysis, prompting a closer examination of the situation. Moreover, those within the organization are usually in the best position to recognize and report misconduct, playing a critical role in bureaucratic oversight. However, the internal culture of many organizations may discourage reporting due to fear of reprisal or damage to one's career, which can complicate the internal reporting of fraud.