CFE – Fraud Prevention and Deterrence — Question 53

Management at ABC Corp. is assessing the company’s ethical tone and how it affects the organization’s fraud risk. To most effectively reinforce an anti-fraud culture, management should:

Answer options

• A. Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place
• B. Create an environment in which employees feel safe challenging management’s decisions
• C. Implement two separate sets of ethics policies, one for management and one for employees
• D. All of the above

Correct answer: A

Explanation

The correct answer, A, emphasizes the importance of having a comprehensive checklist to ensure all elements of a strong ethical tone are present, which is essential for an anti-fraud culture. Option B, while important for employee morale, does not directly address the establishment of a strong tone at the top. Option C undermines ethical unity by creating separate policies, which can lead to confusion and a weakened ethical stance. Option D cannot be correct because not all the options effectively promote a strong anti-fraud culture.