CFE – Fraud Prevention and Deterrence — Question 5

Which of the following statements is MOST ACCURATE regarding an effective system of anti-fraud controls?

Answer options

• A. It fully eliminates the risk of fraud by removing opportunities for misbehavior
• B. It focuses more on preventive controls than detective controls
• C. It prioritizes implementing detective controls over preventive controls
• D. It deters fraudsters by increasing the perception that fraud will be detected

Correct answer: B

Explanation

The correct answer is B because an effective anti-fraud system should focus on preventive measures to stop fraud before it occurs. Option A is incorrect as no system can fully eliminate fraud risk. Option C misrepresents the approach by suggesting that detective controls should take precedence, which is less effective. Option D, while relevant, does not capture the primary focus on prevention.