Prevention of fraud must be an integral part of which aspect of a business?

The prevention of fraud must be an integral part of corporate strategy because it involves establishing a strong foundation for ethical practices, risk management, and compliance across the entire organization. A corporate strategy outlines the long-term goals of the business and the means by which those goals are to be achieved. By integrating fraud prevention into corporate strategy, a business can create a culture of integrity, diminish opportunities for fraud, and ensure that all employees understand the importance of ethical behavior.

Incorporating fraud prevention into corporate strategy helps align policies, training, and monitoring systems throughout the organization. It sets a tone at the top that emphasizes the significance of preventing unethical behavior, which can enhance stakeholder trust and contribute to the sustainable success of the business.

Other aspects such as internal audit and external audit focus more specifically on assessing and verifying existing controls and processes rather than establishing overarching strategies. While they play crucial roles in checking for compliance and effectiveness, they are more reactive compared to the proactive nature of embedding fraud prevention in the overall corporate strategy. Similarly, administrative strategy typically pertains to operational efficiency and does not encompass the broader risk management and culture-setting aspects necessary for effective fraud prevention.