Fraud Reporting Program Best Practices:
Ensuring anonymity encourages employees to report fraud without fear of retaliation. This enhances the effectiveness of the reporting program.
Why D is Correct:
Communicating confidentiality builds trust and increases participation in the fraud reporting program.
Why Other Options are Incorrect:
A: Fraud risks are not limited to organization size.
B: Restricting reports to immediate supervisors may create barriers.
C: Holding employees accountable for unsubstantiated tips discourages reporting.
[References:, ACFE’s recommendations for successful fraud reporting systems emphasize confidentiality and employee trust., , , References for All Questions:, ACFE Fraud Examination Guide., COSO framework and ISA auditing standards., Industry best practices for fraud prevention, governance, and due diligence., , , ]
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