Bpp learning Media is an acca approved Content Provider

segregation of duties 
and 
documentation requirements
,
 
are also 
significant. 

 
Controls must be developed in a structured manner, taking account of the whole spectrum of risk and 
focusing on the key risks identified in each area of the business. 

 
Managers and staff should be aware of their 
responsibilities
to help in detecting fraud. Fraud detection 
is also helped by having 
information readily available 
and allowing 
whistleblowing
. 

 
Organisations should establish a 
fraud response plan
, setting out how the 
method 
and 
extent 
of the 
fraud and 
possible suspects 
should be investigated. 

 
It is the responsibility of the directors to take such steps as are reasonably open to them to 
prevent and 
detect 
fraud. 

 
The growth of globalisation has created more opportunities for money laundering which governments 
and international bodies are trying to combat with legislation. 

 
In the UK, there are various offences relating to money laundering, including tipping off a money 
launderer (or suspected money launderer) and failing to report reasonable suspicions. 
CHAPTER ROUNDUP 
BPP Tutor Toolkit Copy

---

CHAPTER 10
//
IDENTIFYING AND PREVENTING FRAUD 
 
289 
 
1
Applying incorrect rates to understate depreciation will result in a higher profit, giving a more favourable 
impression of financial health. Is this true or false? 
2
True
False
Computers increase the risk of fraud 
Motivation is a prerequisite for fraud
3
Who has the primary responsibility for preventing and detecting fraud? 
A 
The external auditors 
B 
The internal auditors
C The 
directors 
D The 
shareholders