CFE – Fraud Prevention and Deterrence — Question 56

Reduced employee productivity is an indirect cost of fraud that can be difficult for organizations to calculate.

Answer options

• A. True
• B. False

Correct answer: B

Explanation

The correct answer is B because while reduced employee productivity may be an effect of fraud, it is not considered an indirect cost that is easily quantifiable. Option A is incorrect as it suggests that this impact can be easily measured, which is not typically the case.