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ACFE CFE-Fraud-Prevention-and-Deterrence Exam - Topic 3 Question 124 Discussion

Sycamore Inc. has a simple organizational structure with few specialized departments. The structure of Sycamore Inc. increases the likelihood that fraud will go undetected within the organization.
A) True
B) False

ACFE CFE-Fraud-Prevention-and-Deterrence Exam - Topic 3 Question 124 Discussion

Actual exam question for ACFE's CFE-Fraud-Prevention-and-Deterrence exam
Question #: 124
Topic #: 3
[All CFE-Fraud-Prevention-and-Deterrence Questions]

Sycamore Inc. has a simple organizational structure with few specialized departments. The structure of Sycamore Inc. increases the likelihood that fraud will go undetected within the organization.

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Suggested Answer: A

Simple organizational structures often suffer from lack of segregation of duties and fewer levels of oversight. According to the ACFE Manual:

''A simple or poorly designed structure can inhibit accountability and effective oversight. Lack of defined roles and responsibilities can increase the likelihood that fraud will go undetected.''


by Laila at Jun 18, 2026, 01:13 AM

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Ula
10 hours ago
I think it's false, a simple structure can also mean faster communication.
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Maryann
6 days ago
Totally agree, fewer departments can lead to less oversight.
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Rosendo
11 days ago
I feel like there might be exceptions, but overall, I lean towards A being correct based on what we studied.
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Mila
16 days ago
This seems similar to a practice question we did about organizational structures and fraud risks. I think the answer is A.
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Shanda
21 days ago
I'm not entirely sure, but I think we covered that fewer departments could mean fewer checks and balances.
upvoted 0 times
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Nida
26 days ago
I remember discussing how a simple structure can lead to less oversight, which might make fraud easier to commit.
upvoted 0 times
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