The Center for Audit Quality (CAQ) issued a paper in 2010 on deterring and detecting fraud. The CAQ report identifies three ways in which individuals involved in the financial reporting process (management, the audit committee, internal audit, external audit, and regulatory authorities) can mitigate the risk of fraudulent financial reporting. Describe these three ways, and articulate your opinion on whether these will be effective given your knowledge of frauds that have happened in the relatively recent past (such as Enron, WorldCom, Parmalat, and Koss).
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