The correct answer is: The board of directors
Rationale: The directors are responsible for the conduct of the business, the deterrence and detection of fraudulent (and other dishonest) conduct, and the reliable reporting of financial information.
Not all organisations have a fraud officer. The responsibility of the external auditor is only to express an opinion on the financial statements, although audit procedures should have a reasonable expectation of detecting misstatements arising from fraud. The audit committee reviews the organisation's performance in fraud prevention, but also reports to the board.
