Final answer:
The type of fraud most difficult to prevent due to the power to override controls is fraud committed by a company president. This form of fraud, which includes embezzlement, is considered a corporate crime and poses significant challenges for internal oversight due to the dilemmas faced by those who recognize it. The correct option is B).
Step-by-step explanation:
The type of fraud that is usually most difficult to prevent due to the ability to override internal controls is b. Fraud committed by a company president. High-level executives typically have the power to override controls, which makes it challenging to both detect and prevent fraudulent activities carried out by individuals in these positions. This kind of fraud falls under the umbrella of corporate crime, which often involves misuse of company's resources, abuse of power, and acts that can significantly harm the organization’s financial position and reputation.
Internal bureaucracy plays a complex role when it comes to oversight and reporting on mismanagement and criminal behavior. Those within the bureaucracy are best positioned to notice such behaviors, but due to potential serious personal repercussions, including job termination, many may choose to not report it. This moral dilemma can reduce the efficacy of internal controls and oversight, making high-level fraud more difficult to detect and prevent.
An example of corporate crime in this framework would be a. Embezzlement, where an individual in a position of power misappropriates funds for their own use.