Question

Which of the following is a result of the presence of fraud prevention controls within an organization?

A. Employees are less likely to commit fraud
B. The organization bonding insurance company will reduce its rate based on the controls in place
C. The auditors will be less thorough during audits
D. Employees feel more trusted

Answer 1

Fraud prevention controls within an organization result in A) employees being less likely to commit fraud, B) the organization's bonding insurance company reducing its rate, and D) employees feeling more trusted.

Step-by-step explanation:

The presence of fraud prevention controls within an organization has several benefits. Firstly, employees are less likely to commit fraud when there are strict controls in place. These controls act as a deterrent and create a culture of integrity within the organization. Secondly, the organization's bonding insurance company may reduce its rate based on the controls in place. This is because the presence of effective controls reduces the risk of fraud, making the organization a lower risk for the insurance company. Lastly, employees feel more trusted when fraud prevention controls are implemented. They understand that the organization is taking proactive measures to prevent fraud, which fosters a sense of trust and confidence.