Which of the following is NOT true regarding why fraud prevention controls are important?
a. Preventing fraud also saves the family of the perpetrator from embarrassment (guilt by association).
b. Once the fraud has been committed, the cost of any legal action taken can cause the victims to lose even more.
c. The organization that isn't proactive about possible fraud is more likely to have an employee commit a fraud act.
d. Fraud control costs are less than the known costs that would have been lost through fraud.
d
FEEDBACK: a. This is a true statement.
b. This is true regarding additional costs incurred through taking legal action.
c. This is a true statement.
d. There is no way to know if fraud would have occurred without the controls in place and also no way to accurately measure the dollar amount.
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