Final answer:
The option 'Preparation of a surveillance log' is not one of the factors considered in deciding whether or not to investigate fraud. Other factors include the signal that an investigation will send, the perceived cost, exposure or amount at risk, and the strength of the predication. Preparing a surveillance log is a tool used during an investigation, not a deciding factor to initiate it.
Step-by-step explanation:
In deciding whether to investigate fraud, organizations consider a variety of factors. These factors include:
- The signal that investigation or noninvestigation will send to others in the organization.
- The perceived cost of the investigation.
- Exposure or amount that could have been taken, which relates to the potential impact of the fraud.
- Perceived strength of the predication, meaning the amount of evidence or suspicion already present to justify an investigation.
However, the option 'Preparation of a surveillance log' does not typically factor into the decision to initiate a fraud investigation. Surveillance logs may be a tool used during an investigation, but they are not a factor in the decision-making process to begin an investigation.
Understanding these factors is critical in the business and legal environment, where strategic decisions about fraud investigations need to balance resource allocation with the potential risks and signals sent to the corporation. Opportunity costs, rational decision-making, and accurate assessment of behavior under cognitive load (as discussed in the fields of economics and human factors psychology) are all relevant in a broad sense to the complex decision of whether to investigate suspected fraud.