CFE – Fraud Prevention and Deterrence — Question 36

According to the 2020 Report to the Nations, which of the following is the most common method by which frauds are detected?

Answer options

• A. Confession
• B. Internal audit
• C. Tips
• D. External audit

Correct answer: C

Explanation

The correct answer is C, as tips are often the most common way fraud is reported and detected. While confessions, internal audits, and external audits can also reveal fraud, they occur less frequently compared to tips from employees or whistleblowers.