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ACFE CFE-Fraud-Prevention-and-Deterrence Exam - Topic 1 Question 100 Discussion

Which of the following is one of the recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?
B) Shareholder oversight of internal controls
A) A mandatory independent compensation committee
C) A written charter for management
D) Adequate audit committee resources and authority

ACFE CFE-Fraud-Prevention-and-Deterrence Exam - Topic 1 Question 100 Discussion

Actual exam question for ACFE's CFE-Fraud-Prevention-and-Deterrence exam
Question #: 100
Topic #: 1
[All CFE-Fraud-Prevention-and-Deterrence Questions]

Which of the following is one of the recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?

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Suggested Answer: B

by Yaeko at Dec 09, 2024, 02:53 PM

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Sage
9 months ago
A mandatory independent compensation committee? Really? That seems excessive.
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Tanja
9 months ago
D is the best option here, no question about it!
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King
10 months ago
B is crucial for transparency, but I doubt it would work effectively.
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Malissa
10 months ago
A sounds right too, but I'm not sure it's mandatory.
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Paulene
10 months ago
I think it's D, definitely need strong audit committees!
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Aileen
10 months ago
I vaguely remember that having adequate resources for audit committees was highlighted in our readings. Option D sounds familiar.
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Sabra
11 months ago
I practiced a similar question, and I feel like a written charter for management was mentioned, but I can't recall if it was a recommendation.
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Dana
11 months ago
I’m not entirely sure, but I remember something about independent oversight being crucial. Could it be option B?
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Loren
11 months ago
I think the Treadway Commission emphasized the importance of audit committees, so I might lean towards option D.
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Rodolfo
11 months ago
I'm confident the answer is D. The Treadway Commission emphasized the importance of a strong audit committee to prevent financial fraud.
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Alica
11 months ago
The Treadway Commission recommendations are important, so I'll review my notes on that to help me pick the right choice here.
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Sherell
11 months ago
Hmm, I'm not totally sure about this one. I'll have to think it through carefully before selecting an answer.
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Sheridan
11 months ago
This question seems straightforward, I think the answer is D - Adequate audit committee resources and authority.
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Lili
1 year ago
I'm torn between B and D. Adequate compensation committee resources and an independent audit committee both sound like good ways to combat financial fraud. But I guess D is the more comprehensive solution.
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Filiberto
1 year ago
Having both adequate compensation committee resources and an independent audit committee is crucial for preventing fraud.
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Cyril
1 year ago
I agree, D seems like a more comprehensive solution.
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Gracia
1 year ago
B is important, but I think D covers more bases.
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Letha
1 year ago
Haha, I bet the Treadway Commission was like, 'Let's make sure these companies aren't cooking the books like they're making pancakes!'
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Kimberely
1 year ago
I agree with Elvis. An independent audit committee is crucial to ensure financial reporting integrity and accountability.
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Jesusita
1 year ago
I agree, it adds another layer of protection against fraudulent activities.
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Kaycee
1 year ago
I think implementing the recommendations from the Treadway Commission can greatly improve transparency in financial reporting.
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Lezlie
1 year ago
Yes, it helps to provide oversight and ensure transparency in financial reporting.
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Cassi
1 year ago
Yes, it's important to have checks and balances in place to ensure accurate financial reporting.
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Nichelle
1 year ago
I think having an independent audit committee is definitely important.
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Elena
1 year ago
I agree, having an independent audit committee can definitely help prevent fraud.
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Elvis
1 year ago
Option D seems like the most comprehensive approach to addressing the issue. An independent audit committee can provide an objective assessment and oversight to reduce the likelihood of fraud.
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Marquetta
1 year ago
Definitely, having checks and balances in place is crucial to prevent fraudulent activities.
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Reita
1 year ago
It's important to have that oversight to maintain integrity in financial reporting.
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Sue
1 year ago
I agree, having an independent audit committee can provide a fresh perspective and help ensure transparency.
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Lynna
1 year ago
Option D does seem like a good choice. An independent audit committee can definitely help prevent fraud.
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Leonardo
1 year ago
I'm not sure, but I think C) Develop a written charter for management could also be a good recommendation to prevent fraud.
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Josefa
1 year ago
I agree with Tyisha. Having an independent audit committee can help ensure transparency and reduce the risk of fraud.
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Tyisha
1 year ago
I think the answer is D) Have a mandatory independent audit committee.
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