Final answer:
Employees and managers, not auditors, are the ones who detect most frauds in an organization.
Step-by-step explanation:
Research has shown that employees and managers, not auditors, detect most frauds. This means that the people working within a company or organization are more likely to identify instances of fraud or misconduct rather than external auditors. These insiders have access to internal information and can detect irregularities in day-to-day operations.
Insiders may become aware of fraud through various means such as observing suspicious behavior, noticing discrepancies in financial records, or receiving tips from other employees. Their familiarity with the organization's operations and culture allows them to identify red flags that auditors may not be able to detect from an external perspective.