Which internal control is crucial for deterring fraudsters?

Reducing the opportunity to commit fraud is indeed a crucial internal control mechanism in deterring fraudsters. This approach recognizes that the likelihood of fraudulent behavior increases when individuals perceive that opportunities to commit fraud exist without adequate oversight. Therefore, implementing measures such as segregation of duties, regular audits, monitoring of transactions, and enforcing access controls can significantly limit the chances for employees to engage in fraudulent activities.

By minimizing opportunities, organizations can proactively address vulnerabilities that could be exploited by fraudsters. This control not only discourages potential fraudsters from attempting to commit offenses but also creates a culture of accountability where employees feel observed and deterred from dishonest actions.

In contrast, the other options do not directly address the essence of fraud deterrence. For instance, while expanding employee benefits may enhance job satisfaction, it does not prevent fraudulent behavior. Similarly, having less frequent auditing can actually increase potential fraud risk, as it reduces the chances of detecting irregularities in a timely manner. Increasing employee workloads may inadvertently lead to burnout but does not necessarily contribute to fraud prevention or deterrence.