You have been asked to perform an audit of Montgomery LTD's sales and collection cycle. It is a medium-sized manufacturer and wholesaler of stationery products to different bookshops in Kowloon. All their sales are made on credit. The company has the following policies:

1. The monthly customer statement should be issued no later than the 3rd day of the following month after being reviewed by the responsible supervisor.

Explain the objectives of the fraud prevention policy.