CFE – Fraud Prevention and Deterrence — Question 32

Having specialized departments within a company often increases the overall risk of fraud by the organization.

Answer options

• A. True
• B. False

Correct answer: B

Explanation

The correct answer is B because specialized departments can actually enhance internal controls and reduce opportunities for fraud by segregating duties. On the other hand, having specialized departments does not inherently increase fraud risk; it can lead to better oversight and accountability.