Discuss AGA CGFM Exam Topic 3 Question 79

A primary deterrent to fraud is

Adelegation of responsibility without oversight.

Bthe fear of detection.

Cjob satisfaction and sense of 'team.'

Dperformance of employee background checks.

Suggested Answer: B

Deterrence of Fraud:

A primary deterrent to fraud is the fear of being caught. When individuals believe there is a high likelihood of detection, they are less likely to commit fraudulent acts.

Strong internal controls, monitoring, and audits increase this fear and serve as effective deterrents.

Explanation of Answer Choices:

A . Delegation of responsibility without oversight: Incorrect. Lack of oversight increases the risk of fraud rather than deterring it.

B . The fear of detection: Correct. The fear of being caught is one of the most effective fraud deterrents.

C . Job satisfaction and sense of 'team': While these contribute to a positive work environment, they do not directly deter fraud.

D . Performance of employee background checks: Background checks are a preventive measure but are less effective as a fraud deterrent compared to detection risk.

Association of Certified Fraud Examiners (ACFE), Fraud Prevention Guidance.

GAO, Fraud Risk Management Framework.

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25 comments · newest first

Effie 5 months ago

D makes sense too. Background checks can prevent bad hires.

Anastacia 6 months ago

C is interesting. A happy team might be less likely to commit fraud.

Karima 6 months ago

I agree, but A could also be a problem. No oversight can lead to fraud.

Alesia 6 months ago

I think B is the strongest answer. Fear of getting caught really stops people.

Arletta 6 months ago

Wait, are we really saying fear is the main deterrent? Sounds a bit extreme!

Leah 6 months ago

Background checks are important, but they’re not foolproof.

Markus 6 months ago

C) job satisfaction? Really? Not sure that’s a strong deterrent.

Ceola 7 months ago

I think A) delegation of responsibility without oversight can lead to more fraud.

Beata 7 months ago

Definitely B) the fear of detection. That's what keeps people in check.

Charlene 7 months ago

B) is the way to go. Fraud doesn't stand a chance against the all-seeing eye of the company.

Jeannetta 8 months ago

I'd go with B. Fraud just doesn't pay when you're constantly looking over your shoulder.

Dino 8 months ago

Definitely B. Who wants to risk getting caught red-handed?

Rebecka 8 months ago

B) the fear of detection.

Leatha 8 months ago

Job satisfaction seems less relevant here, but I could see how C might play a role in a team environment. Still, I lean towards B for the fear factor.

Alberta 8 months ago

I think we practiced a question similar to this, and it emphasized the importance of oversight. Maybe D is also a contender because background checks can help deter fraud?

Amber 8 months ago

I'm not entirely sure, but I feel like delegation without oversight could actually increase the risk of fraud, so A seems unlikely.

Robt 9 months ago

I remember discussing how fear of detection is a strong motivator against fraud, so I think B might be the right choice.

Roxane 9 months ago

I'm confident B is the right answer. Fraud is all about the risk-reward calculation, and the fear of detection is the key factor.

Laurel 9 months ago

I'm leaning towards B, but C also seems plausible. A good work culture and team spirit could discourage fraud too.

Brigette 9 months ago

B is the obvious choice here. Fraud is all about risk and consequences, so the fear of getting caught has to be the biggest deterrent.

Coral 9 months ago

I'm not sure about this one. I'll have to think it through carefully. Maybe I can eliminate some of the options first.

Shawn 10 months ago

Hmm, I think the answer is B. The fear of detection seems like the most important deterrent to fraud.

Rebbeca 4 months ago

↳ replying to Shawn

I still think B is stronger. People are more careful if they fear detection.

Rebecka 5 months ago

↳ replying to Shawn

True, but what about A? Lack of oversight can lead to fraud too.

Anjelica 5 months ago

↳ replying to Shawn

I agree, B makes the most sense. Fear of getting caught really stops people.

AGA CGFM Exam - Topic 3 Question 79 Discussion