CFE – Investigation — Question 50

Which of the following should be done to prepare an organization for a formal fraud investigation?

Answer options

• A. Prepare the managers of the employees who will be involved in the investigation.
• B. Issue an organization-wide communication that notifies all employees about the investigation.
• C. Notify all managers about the investigation, explaining why it is happening and who is involved.
• D. Inform the subject that they are under investigation.

Correct answer: B

Explanation

The correct answer is B because issuing an organization-wide communication ensures that all employees are aware of the investigation, which helps maintain transparency and trust. Options A and C focus on informing specific groups rather than the entire organization, which may lead to misinformation or speculation. Option D is inappropriate as it could compromise the investigation by alerting the subject prematurely.