Which of the following would be the most effective fraud prevention control?

Which of the following would be the most effective fraud prevention control?
A . Email alert sent to management for checks issued over $100,000.
B . Installation of a video surveillance system in a warehouse prone to inventory loss.
C . New hire training to explain fraud and employee misconduct.
D . Daily report that identifies unsuccessful system log-in attempts

View Answer

Answer: A

Explanation:

The most effective fraud prevention control among the listed options is an email alert sent to management for checks issued over $100,000. This control directly addresses a potential high-risk area (large transactions) and ensures that transactions of significant amounts are reviewed and approved by management, thus providing a strong deterrent and detection mechanism for fraudulent activity.

Reference: Common financial control practices and fraud prevention mechanisms in financial management.