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AGA GFMC Exam - Topic 2 Question 6 Discussion

Actual exam question for AGA's GFMC exam
Question #: 6
Topic #: 2
[All GFMC Questions]

A primary deterrent to fraud is

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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 Bok at Jul 11, 2025, 09:00 PM

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Alethea
4 months ago
Background checks help, but they’re not foolproof.
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Burma
4 months ago
Wait, job satisfaction? Really?
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Gary
4 months ago
Totally agree, oversight is key!
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Hayley
4 months ago
I’m surprised that oversight isn’t the main point here!
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Selene
5 months ago
The fear of detection is a big factor in preventing fraud.
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Frederica
5 months ago
I feel like employee background checks are crucial, but I wonder if they really deter fraud more than the fear of getting caught.
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Moon
5 months ago
Job satisfaction seems important, but I can't recall it being mentioned as a deterrent to fraud in my studies.
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Gail
5 months ago
I remember a practice question that emphasized oversight as a key element in fraud prevention. Maybe delegation without oversight is a trick answer?
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Mozelle
5 months ago
I think the fear of detection is a big factor in preventing fraud, but I'm not entirely sure if it's the primary deterrent.
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Tresa
6 months ago
I'd say the answer is B - the fear of detection. That's a key principle in fraud prevention that we've covered extensively in this course. As long as employees know there's a strong chance they'll get caught, they'll be less likely to try to commit fraud in the first place.
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Benton
6 months ago
I'm a little confused by this question. I'm not sure if the answer is A, B, or D. I'll need to review my notes on fraud prevention to decide which one is the primary deterrent. Hopefully I can figure it out before the exam.
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Rosamond
6 months ago
Hmm, I'm not totally sure about this one. I'm debating between B and D. I know background checks are important for preventing fraud, but the fear of getting caught seems like the most direct deterrent. I'll have to think this through a bit more.
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Skye
6 months ago
This one seems pretty straightforward. I'm pretty confident the answer is B - the fear of detection. That's a key deterrent to fraud that I've learned about.
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Georgiann
8 months ago
Delegation of responsibility without oversight? That's just asking for trouble! It's like handing a kid the keys to the candy store.
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Emiko
8 months ago
Job satisfaction and sense of 'team'? What is this, a feel-good corporate retreat? Let's get real here.
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Bobbye
8 months ago
Performance of employee background checks? Sounds like a waste of time and money to me. A good thief can always slip through the cracks.
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Chantay
9 months ago
I think performance of employee background checks is important too, to prevent hiring individuals with a history of fraudulent behavior.
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Kami
9 months ago
The fear of detection? Duh, that's a no-brainer! Who's going to commit fraud if they think they'll get caught red-handed?
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Lavonna
8 months ago
I agree, knowing that there's a chance of being caught definitely makes people think twice before committing fraud.
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Jolanda
8 months ago
Exactly! The fear of getting caught is a powerful deterrent.
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Andrew
9 months ago
I believe job satisfaction and sense of 'team' can also deter fraud, as happy employees are less likely to engage in unethical behavior.
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Kizzy
9 months ago
I agree with Terina, people are less likely to commit fraud if they know they might get caught.
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Terina
9 months ago
I think the fear of detection is the primary deterrent to fraud.
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