Which action contributes to the prevention of fraud in business transactions?

The action that contributes to the prevention of fraud in business transactions is separating duties regarding financial processes. This practice, often referred to as segregation of duties, involves dividing responsibilities among different individuals to reduce the risk of error or fraud. When one person is responsible for multiple steps in a financial process, such as authorizing payments, recording transactions, and reconciling accounts, it creates an opportunity for fraudulent activities to occur without detection. By ensuring that no single individual has control over all aspects of a financial transaction, businesses can implement a system of checks and balances that helps identify and prevent fraudulent actions.

In contrast, combining accounts for convenience could lead to a lack of oversight and increased risk of fraud, as it may obscure the flow of funds. Not tracking third-party payments can create gaps in accountability that criminals could exploit. Relying solely on internal communication may fail to provide an adequate system of checks needed to catch discrepancies or fraudulent activities, as it lacks formal procedures or independent verification. Therefore, separating duties is crucial for establishing a robust control environment that mitigates the potential for fraud in business transactions.