What can conducting surprise audits help to prevent?

Conducting surprise audits is particularly effective in preventing check fraud because it adds an element of unpredictability to the audit process. When employees are aware that audits can occur at any time without prior notice, it deters fraudulent activities, as the likelihood of detection increases. Surprise audits allow for a quick review of transactions and processes, helping to identify discrepancies or unusual patterns in check issuance or processing.

The other options may relate to the overall effectiveness of an organization’s financial controls, but they are not as directly associated with the specific purpose of surprise audits. Vendor management issues typically stem from relationship or contract management practices and are not the primary focus of surprise audits. Employee discontent may arise from various factors within the workplace, but it is much less likely to be influenced directly by the presence of surprise audits. Security breaches tend to involve IT and operational protocols that go beyond financial audits, making surprise audits less relevant in directly preventing such events.