CFE – Fraud Prevention and Deterrence — Question 47

Effectively documenting and communicating organizational hierarchies, including the proper flow of information, can be a helpful tool in preventing fraud.

Answer options

• A. True
• B. False

Correct answer: B

Explanation

The correct answer is B because while documenting organizational hierarchies is important, it does not inherently prevent fraud. Fraud prevention requires more comprehensive measures such as internal controls and auditing practices, rather than just the flow of information.