Why do you think mandatory job rotation and vacations are effective controls to reduce instances of fraud?

In its 2008 Report to the Nation on Occupational Fraud and Abuse, the Association of Certified Fraud Examiners reported the following results with respect to ranking of controls’ importance in detecting or limiting the losses from the specific fraud scheme they investigated and their relative effectiveness in reducing the amount of losses.

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Rank Average Score 1 % Reduction in Medium Losses 52.8% Control Internal audit Surprise audit Management review of internal controls Fraud hotline Mandatory job rotation/vacations Reward for whistleblowers Audit of ICFR Audit of financial statements 2345678 3.81 3.51 66.2 3.17 45.0 3.03 60.0 3.02 61.0 2.86 28.7 2.65 47.8 2.53 40.0