CFE – Fraud Prevention and Deterrence — Question 6

Open-door management policies are a fraud prevention mechanism that addresses which leg of the Fraud Triangle?

Answer options

• A. Lack of integrity
• B. Opportunity
• C. Willingness
• D. Pressure

Correct answer: B

Explanation

Open-door management policies reduce the 'Opportunity' leg of the Fraud Triangle by encouraging transparency and communication within the organization. By allowing employees to report unethical behavior without fear of retaliation, these policies limit the chances for fraudulent activities to occur. The other options, such as 'Lack of integrity' and 'Pressure', do not directly relate to the structural changes that open-door policies create to deter fraud.