CFE – Fraud Prevention and Deterrence — Question 22

Employees should be made aware that management is watching for lifestyle and behavior changes in staff members that might indicate fraud.

Answer options

• A. True
• B. False

Correct answer: B

Explanation

The correct answer is B because it is generally inappropriate for management to surveil employees' personal lifestyles or behaviors without cause. Monitoring should be based on specific indicators of fraud rather than general lifestyle changes, which can lead to privacy violations and employee distrust.