QUESTION 3 (25 MARKS)

a.Consider the three aspects of the fraud triangle. If you were hired by the board of directors to tell them what they could do to prevent fraud, what general activities would you tell them to engage in.

Briefly explain three (3) general fraud prevention activities for each of the three dimensions of fraud triangle.

[9 marks]

b.Benford's Law is a widely used digital analysis technique in fraud detection.

Briefly explain the basic concept of Benford's Law and how it is being used to detect fraud (provide examples where necessary).

[6 marks]

c.Many people feel that it is the job of auditors to detect fraud. However, it may not be necessarily true. Identify and explain briefly three (3) circumstances (according to the three approaches of fraud investigations) that make it difficult for auditor to detect fraud.

[10 marks]