CFE – Fraud Prevention and Deterrence — Question 46

Which of the following is a preventive anti-fraud control?

Answer options

• A. Independent reconciliations
• B. Continuous audit techniques
• C. Fraud awareness training
• D. Whistleblower hotline

Correct answer: D

Explanation

The correct answer is D, as a whistleblower hotline encourages employees to report fraudulent activities, thus preventing fraud from occurring. Options A, B, and C are more focused on detecting or responding to fraud rather than preventing it beforehand.