Running Audit Reports help monitor suspicious activity in order to prevent fraud, waste, and abuse.

• A. True
• B. False
• C. Not applicable
• D. Cannot determine

Answer: (A)

Running Audit Reports is a key control activity that continuously reviews system and transaction activity to detect anomalies and potential misuse. Audit reports summarize logs, transactions, access events, and exceptions, and can be set to flag unusual patterns or threshold breaches. By surfacing indicators such as large, repetitive, or out-of-hours transactions, unexpected access to sensitive data, or deviations from approved processes, these reports enable timely investigation and corrective action. This proactive monitoring helps deter fraud, waste, and abuse by making it harder for improper activity to go unnoticed and by providing evidence to enforce policies and strengthen internal controls. While no single report guarantees prevention, regular auditing and reporting are essential tools in spotting problems early and guiding remediation.