Question

Internal auditors are more likely to detect fraud by developing/strengthening their ability to

A. Interrogate fraud perpetrators to discover why the fraud was committed.
B. Document computerized operating system programs.
C. Develop internal controls to prevent the occurrence of fraud.
D. Recognize and question changes that occur in organizations.

Answer 1

Internal auditors are vital in fraud prevention by enhancing internal controls and staying vigilant about organizational changes. Recognizing and questioning changes is a key function in their role.

Step-by-step explanation:

Internal auditors are key players in the detection and prevention of fraud within an organization. Their role often involves the development and enhancement of internal controls to prevent the occurrence of fraud, which makes Option C the most likely answer to the question of how internal auditors can detect fraud. It is crucial for internal auditors to recognize and question changes within the organization, as these changes can be indicators of fraud.

Furthermore, while documentation and interrogation skills are valuable, the primary function of internal auditors in fraud detection is to maintain a robust system of checks and balances through the implementation of strong internal controls.