Certified Fraud Examiner Practice 2025 - Free Practice Questions and Study Guide

The Treadway Commission, formally known as the National Commission on Fraudulent Financial Reporting, primarily focuses on improving the accuracy and integrity of financial reporting and reducing fraud in financial statements. One of the key responsibilities highlighted by the Treadway Commission is the role of auditors in the detection and prevention of fraud. Auditors are tasked with evaluating the risk of fraud during their audits and implementing procedures to address that risk. This ensures that stakeholders, including investors and the public, can trust the financial information provided by companies.

While the other options reflect important aspects of business and regulatory practices, they do not accurately capture the specific focus of the Treadway Commission’s recommendations regarding the responsibilities of auditors in relation to fraud. Auditors' vigilance in detecting and preventing fraud is crucial for maintaining the credibility of financial reporting and for protecting the interests of shareholders and the public.