5-3. Management is responsible for establishing effective internal control for its organization, including measures to prevent, deter, and detect fraud. Appendix 7A describes antifraud programs and measures.

Required:

a. What are the three major categories of antifraud measures and the measures that should be established under each category?

b. Under the measure of create a positive workplace environment, provide

(1) Two examples of antifraud controls.

(2) Two examples of factors that detract from a positive workplace environment.