Question

For the small business, which of the following is a good way to prevent or detect fraud? Segregate duties. Owner involvement in the business. CPA Audit. Hire trusted employees only.

Answer 1

For a small business, a good way to prevent or detect fraud is B. Owner involvement in the business.

What is a small business?

A small business can be defined as a privately owned corporation, partnership, or sole proprietorship with fewer employees and less annual revenue than a large business.

Five types of small businesses have been identified as follows:

• Sole proprietorship
• Partnership
• Corporation
• S Corporation
• Limited liability company.

Given the employment and revenue profiles of small businesses, they may not afford to detect or prevent fraud by the segregation of duties as required by internal controls.

Hiring CPA Auditors and trusted employees only cannot help small businesses prevent or detect fraud.

Thus, the best way for a small business to prevent or detect fraud is by the involvement of the owner in the business.

Learn more about small businesses and internal controls at https://brainly.com/question/14473430

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