Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 73

According to the Standards, which of the following control strategies would be the most effective in helping to prevent fraud?

Answer options

• A. Have employees annually sign a code of conduct requiring that they report any known violations.
• B. Implement a whistleblower hotline where individuals can make anonymous phone calls to report fraudulent activities.
• C. Provide periodic fraud awareness training to employees and test their understanding of the training through online surveys.
• D. Conduct routine employee surveys to solicit their knowledge of fraud and unethical behavior within the organization.

Correct answer: C

Explanation

Providing periodic fraud awareness training and testing employees' understanding through online surveys ensures that they are informed about the signs of fraud and the importance of reporting it. While the other options promote awareness and reporting, they do not directly assess and enhance employee knowledge in the same way as option C does, making it the most effective strategy.