POLICIES TO ASSIST IN THE AVOIDANCE OF FRAUD AND ERRORS (STUDY OBJECTIVE 8)
Following are three critical actions that an organization can undertake to assist in the prevention or detection of fraud and errors:
Maintain and enforce a code of ethics
Maintain a system of accounting internal controls
Maintain a system of information technology controls
These ongoing actions will not entirely prevent or detect all fraud or errors, but they can greatly reduce the chance of fraud and errors. Each of these actions is discussed next.