AGA CGFM Exam - Topic 3 Question 79 Discussion

Actual exam question for AGA's CGFM exam

Question #: 79
Topic #: 3

[All CGFM Questions]

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.

Show Suggested Answer

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.

by Cherelle at Jan 05, 2026, 05:16 AM

Limited Time Offer

25%

Off

Get Premium CGFM Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Jeannetta

3 days ago

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

upvoted 0 times

...

Dino

8 days ago

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

upvoted 0 times

...

Rebecka

14 days ago

B) the fear of detection.

upvoted 0 times

...

Leatha

19 days 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.

upvoted 0 times

...

Alberta

24 days 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?

upvoted 0 times

...

Amber

29 days ago

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

upvoted 0 times

...

Robt

1 month ago

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

upvoted 0 times

...

Roxane

1 month 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.

upvoted 0 times

...

Laurel

1 month ago

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

upvoted 0 times

...

Brigette

2 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.

upvoted 0 times

...

Coral

2 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.

upvoted 0 times

...

Shawn

2 months ago

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

upvoted 0 times

...