Which of the following is NOT one of the three components of the control structure that help prevent or detect fraud?

The correct answer is that employee incentives are not one of the three primary components of the control structure designed to prevent or detect fraud. The essential elements of this control structure include the control environment, the accounting system, and control procedures.

The control environment sets the tone of the organization, shaping the culture and the overall attitude towards internal controls and ethical behavior, thereby influencing how employees behave in terms of compliance and potential fraudulent activities.

The accounting system provides documentation of the organization's financial transactions and serves as an essential tool for ensuring accuracy and accountability. It enables transparent and understandable records that are crucial for detecting inconsistencies or anomalies that may indicate fraud.

Control procedures are the specific policies and practices that organizations implement to ensure that transactions are executed in accordance with management's directives and that assets are safeguarded. These procedures encompass various activities including approvals, authorizations, verifications, reconciliations, and segregation of duties.

While employee incentives can certainly impact behavior and may ultimately contribute to a culture of integrity or dishonesty within a company, they do not constitute a formal component of the control structure aimed specifically at fraud prevention and detection. Instead, they are more closely related to organizational culture and motivation strategies rather than the structured elements of internal controls designed to mitigate fraud risks.