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In which of the following ways can a whistleblower hotline serve as a prevent
Correct Answer: C
A whistleblower hotline serves as a preventive control by deterring potential perpetrators of fraud. Knowing that their actions can be reported easily and anonymously through the hotline creates a psychological barrier against committing fraud (Option C). This preventive aspect is supported by the IIA's guidance on fraud risk management, which highlights the role of whistleblower mechanisms in creating an environment where unethical behavior is less likely to occur due to the increased risk of detection and reporting.References: * IIA Practice Guide: Internal Auditing and Fraud * ACFE's Fraud Prevention Resources