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ACFE.CFE-Fraud-Prevention-and-Deterrence.v2025-06-19.q102
Question 61

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Question 61/102

The existence of many specialized departments within a company generally decreases the overall risk of fraud within the organization.

A. True

B. False

Correct Answer: B

* Impact of Specialized Departments on Fraud Risk:While specialization improves operational efficiency, it can also create silos, reducing oversight and coordination. This fragmentation may increase the overall fraud risk.
* Key Considerations:
* Fraud often occurs in areas where controls and communication are weak. Specialized departments may inadvertently facilitate fraud by isolating information.
* Cross-departmental collaboration and centralized controls are essential to mitigate these risks.
* Conclusion:The existence of many specialized departments increases the risk of fraud if not properly managed.

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Question List (102q): Question 1: Which of the following is NOT considered a conflict of inter...; Question 2: Reputational damage is an indirect cost of fraud that can be...; Question 3: Fraud risks related to corruption include all of the followi...; Question 4: Andrew, an internal auditor, is formalizing a process to ide...; Question 5: According to the Committee of Sponsoring Organizations of th...; Question 6: Which of the following is a detective anti-fraud control?...; Question 7: Harry is an internal auditor with ABC Company. 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