Final answer:
The recognized methods to prevent fraud include having good internal controls, monitoring employees, and creating an expectation of punishment. Engendering employee goodwill by having lax rules is not an effective method to eliminate fraud; in fact, that would likely increase the risk of fraud.
Step-by-step explanation:
The method that is NOT a recognized means of eliminating fraud opportunities is d) engendering employee goodwill by having lax rules. Good internal controls, monitoring employees, and creating an expectation of punishment are all recognized methods for reducing fraud in an organization. Having lax rules would likely increase the chances of fraudulent behavior as it reduces the perceived risk associated with committing fraud. Instead, maintaining strict policies, regular audits, and a culture of accountability can discourage and detect unethical behavior. Monitoring and internal controls serve to prevent fraudulent opportunities by creating a system of checks and balances, while the expectation of punishment can act as a deterrent. On the other hand, lax rules may lead to a decline in oversight and an increased likelihood of misconduct.