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INTERNAL AUDITING AS A PREVENTION OF EMPLOYEE AND MANAGEMENT FRAUD! Internal auditing is responsible for assisting in the deterrence of fraud by examining and evaluating the adequacy and the effectiveness of control, commensurate with the extent of the potential exposure/risk in the various segments of the entitys operations. In light of the cost and characteristics of offenders, it is important to develop strategies to prevent or detect business fraud. In light of heightened public expectations and new expectations for auditors following the savings and loans scandals, as well as Enron, Arthur Anderson and others, one may ask what greater role can internal auditors play to prevent employee fraud? This Paper addresses this issue, and includes some recommendations for preemptive action against growing employee and management fraud.{12 Pages, 8 Sources}
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