Question

Appropriate hiring will not decrease an organization's risk of fraud.

A) True
B) False

Answer 1

The statement that appropriate hiring will not decrease an organization's risk of fraud is false. Appropriate hiring practices, including background checks and verification of qualifications, play a critical role in mitigating the risk of fraudulent activities.

Step-by-step explanation:

Appropriate Hiring and the Risk of Fraud

The statement 'Appropriate hiring will not decrease an organization's risk of fraud. A) True B) False' is false. Appropriate hiring practices are a key component in reducing the risk of fraud within an organization. These practices involve conducting thorough background checks, verifying qualifications, and assessing the integrity of potential employees. Implementing strong hiring procedures can help to deter and prevent fraudulent activities by ensuring that trustworthy and competent individuals are selected to join the company.

Moreover, it is important to foster an ethical culture and ongoing oversight, which complement the hiring process. An organization that combines appropriate hiring practices with a fraud-aware culture and effective internal controls significantly reduces its vulnerability to fraud. It should be noted, however, that no measures can completely eliminate the risk of fraud; they can only reduce it.