Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

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.

Show Suggested Answer Hide Answer
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

Limited Time Offer

25%

Off

Get Premium CFE-Fraud-Prevention-and-Deterrence Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Theron
15 days ago
I’m not so sure. It could also mean quicker communication.
upvoted 0 times
...
Beatriz
20 days ago
I agree, true. Simple structures can hide issues.
upvoted 0 times
...
Nada
25 days ago
I think it's true. Less oversight means more chances for fraud.
upvoted 0 times
...
Geoffrey
1 month ago
Not sure about that, some companies thrive with fewer layers.
upvoted 0 times
...
Cordie
1 month ago
Definitely true, more chances for things to slip through the cracks.
upvoted 0 times
...
Shantell
1 month ago
Surprised to hear that! I thought simpler meant easier to manage.
upvoted 0 times
...
Ula
2 months ago
I think it's false, a simple structure can also mean faster communication.
upvoted 0 times
...
Maryann
2 months ago
Totally agree, fewer departments can lead to less oversight.
upvoted 0 times
...
Rosendo
2 months ago
I feel like there might be exceptions, but overall, I lean towards A being correct based on what we studied.
upvoted 0 times
...
Mila
2 months ago
This seems similar to a practice question we did about organizational structures and fraud risks. I think the answer is A.
upvoted 0 times
...
Shanda
2 months ago
I'm not entirely sure, but I think we covered that fewer departments could mean fewer checks and balances.
upvoted 0 times
...
Nida
2 months ago
I remember discussing how a simple structure can lead to less oversight, which might make fraud easier to commit.
upvoted 0 times
...

Save Cancel