Formally documenting and communicating organizational hierarchies, including the proper flow of information, can hinder an organization's fraud prevention initiatives.
Properly documenting hierarchies improves fraud prevention by clarifying responsibilities, ensuring accountability, and establishing clear information flow.
This reduces ambiguity and limits opportunities for fraud.
Why the Statement is False:
Documenting and communicating hierarchies strengthens fraud prevention, rather than hindering it.
Conclusion:The statement is false because clear hierarchies enhance fraud prevention initiatives.
[References:ACFE materials on organizational governance and fraud prevention best practices., , , , ]
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