Question

It is most difficult to prevent which type of fraud?

1) Fraud committed by a company president
2) Employee fraud
3) Customer fraud
4) Investment scams

Answer 1

Fraud committed by a company president is the most difficult to prevent due to their authority, access to sensitive information, and potential to override internal controls, leading to less scrutiny and more complex schemes. Thus, the option 1 is the correct answer.

Step-by-step explanation:

The type of fraud that is most difficult to prevent is fraud committed by a company president. This is due to their high level of authority, access to sensitive information, and the ability to override or bypass internal controls. Unlike employee fraud, customer fraud, and investment scams, the president generally has the trust of the board and stakeholders, which can lead to less scrutiny and the opportunity to perpetrate fraud without immediate detection. Additionally, the resources at their disposal can be substantial, making the frauds they commit potentially more damaging and complex to uncover.