CFE – Fraud Prevention and Deterrence — Question 27

According to the 2020 Report to the Nations, __________ schemes are the most common form of occupational fraud, while _________ schemes are the costliest form of occupational fraud.

Answer options

• A. Asset misappropriation; corruption
• B. Asset misappropriation; financial statement fraud
• C. Corruption; asset misappropriation
• D. Financial statement fraud; corruption

Correct answer: C

Explanation

The correct answer is C because the report identifies corruption as the most frequent type of occupational fraud, while asset misappropriation is noted as the most costly. The other options incorrectly attribute the frequency and cost aspects to different schemes.