Question

Strong antifraud controls include:

a. segregation of duties
b. job rotations
c. mandatory vacations
d. all of the above

Answer 1

Strong antifraud controls include segregation of duties, job rotations, and mandatory vacations. Each of these strategies contributes to a robust framework for preventing fraud, and the correct answer is 'all of the above'.

Step-by-step explanation:

Strong antifraud controls are crucial in maintaining the integrity of financial and operational procedures within an organization. These controls include a variety of strategies and principles aimed at minimizing the risk of fraud. The measures listed as options, which are segregation of duties, job rotations, and mandatory vacations, all play a significant role in fraud prevention.

• Segregation of duties involves splitting responsibilities among different individuals to reduce the chance of erroneous or fraudulent activities.
• Job rotations can prevent or detect fraud by having employees switch jobs periodically, which may reveal inconsistencies or manipulations not evident when one person is entrenched in a single role.
• Mandatory vacations ensure that employees are away from their roles for a certain period, allowing for their work to be reviewed and any irregularities potentially identified.

All these are effective tools in an anti-fraud framework, and the correct answer to the question, 'Which strong antifraud controls include?' is d. all of the above.