CERTIFIED FORENSIC FRAUD EXAMINER (CFFE) MODULE THREE
FRAUD PREVENTION AND DETECTION
MONDAY: 2 December 2024. Morning Paper. Time Allowed: 3 hours.
This paper consists of one hundred (100) Multiple Choice Questions. Answer ALL questions indicating the letter (A, B, C or D) that represents the correct answer. Each question is allocated one (1) mark.
1. Which one of the following parties in an organisation is associated with the risk of ineffective oversight?
A. Board of directors
B. Management
C. Internal auditors
D. External auditors (1 mark)
2. Which one of the following parties has the primary responsibility for monitoring controls and putting corrective measures in place?
A. Board
B. Management
C. Internal auditors
D. Internal auditors and management (1 mark)
3. Which one of the following parties in the organisation provides the first line of defence against fraud risk?
A. Heads of department
B. Internal auditors
C. Board
D. None of the above (1 mark)
4. Which one of the following BEST describes the fraud risk, “we are not adequately compensated for our efforts”?
A. Greed
B. Lack of loyalty
C. High sense of entitlement
D. Low sense of entitlement (1 mark)
5. Which one of the following fraud elements BEST describes greed?
A. Pressure
B. Perceived opportunity
C. Justification
D. Situational pressure (1 mark)
6. Which one of the following BEST describes pressure to meet financial targets?
A. Situational pressure
B. Financial pressure
C. Social pressure
D. Regulatory pressure (1 mark)
7. Which one of the following principles of the COSO components is associated with establishing the culture of the organisation?
A. Risk assessment
B. Control environment
C. Control activity
D. Monitoring (1 mark)
8. Which one of the following controls is provided the COSO components?
A. Detective controls
B. Effective controls
C. Preventive and detective controls
D. Preventive controls (1 mark)
9. Which one of the following parties has the responsibility of evaluating the effectiveness of the internal control system?
A. Board
B. Management
C. Audit committee
D. Internal auditor (1 mark)
10. Which one of the following is NOT a component of the fraud prevention check list?
A. Fraud prevention officer
B. Fraud training and awareness
C. Reporting programs
D. Responsibility for fraud prevention (1 mark)
11. Which one of the following controls CANNOT help in mitigation of management override of controls risk?
A. Adequate oversight
B. Employees support program
C. Surprise audits
D. Comprehensive compliance program (1 mark)
12. Which one of the following controls CANNOT discourage employees from engaging in fraudulent activities?
A. Forensic audits
B. Surprise audits
C. Independent reconciliations
D. Fraud detection (1 mark)
13. Which one of the following is a component of fraud prevention health check-up that is associated with defining the organisation’s fraud risk appetite?
A. Fraud risk tolerance and risk management
B. Fraud risk ownership
C. Fraud risk assessment
D. Fraud risk oversight (1 mark)
14. Which one of the following parties is responsible for monitoring the effectiveness of the fraud risk management program?
A. Internal auditor
B. Risk officer
C. Management
D. Board of directors (1 mark)
15. Which one of the following parties is responsible for establishing a culture of ethics and integrity in an organisation?
A. Managers and supervisors
B. Internal auditor
C. The board of directors
D. Management (1 mark)
16. Which one of the following parties is responsible for providing direction of establishing a culture of ethics and integrity in an organisation?
A. Management
B. Board of directors
C. Internal auditors
D. External auditors (1 mark)
17. Which one of the following BEST describes the culture of an organisation that does not respond promptly to reports of fraud?
A. High tolerance for fraudulent activities
B. Gross negligence in fraud prevention
C. Unethical culture
D. High tolerance for fraud risks (1 mark)
18. Which one of the follow parties have responsibility for monitoring the effectiveness of an organisation’s anti-fraud related programs?
A. Management
B. Audit committee
C. Corporate compliance
D. Internal auditor (1 mark)
19. Which one of the following statements is NOT accurate in regard to detective controls?
A. Detective controls are positive reinforcement measures
B. Detective controls are soft controls
C. Detective controls encourage employees not to engage in fraudulent activities
D. Detective controls discourage employees not to engage in fraudulent activities (1 mark)
20. Which one of the following BEST describes the purpose of reengineering of controls?
A. The purpose is to enhance the controls
B. The purpose is to enforce the controls
C. The purpose is to reduce opportunity of collusion
D. The purpose is to strengthen the controls (1 mark)
21. Which one of the following principles is associated with setting clear objectives to enable the identification and assessment of fraud risks?
A. Fraud risk assessment principle
B. Fraud control activities principle
C. Fraud monitoring activities principle
D. Control environment principle (1 mark)
22. Which one of the following statements is ACCURATE in regard to a fraudulent and corrupt organisation environment?
A. Fraudulent and corrupt organisation environment reflects on the board
B. Fraudulent and corrupt organisation environment reflects on individuals
C. Fraudulent and corrupt organisation environment reflects on the internal auditors
D. Fraudulent and corrupt organisation environment reflects on the external auditors (1 mark)
23. Which one of the following statements is NOT accurate in regard to employee’s anti-fraud training?
A. The training should be conducted for both employees and management
B. The training should be conducted annually
C. The training should include details of how the organisation will conduct fraud detection
D. The training should include information about the organisation’s attitude towards fraudulent activities
(1 mark)
24. Which one of the following is a fraud risk associated with financial crisis?
A. Rationalisation
B. Pressure
C. Opportunity
D. Situational pressure (1 mark)
25. Which one of the following BEST describes fraud prevention health check–up component that is related to integrating anti-fraud controls in all the processes?
A. Fraud control activities
B. Fraud risk tolerance and risk management policy
C. Internal control environment
D. None of the above (1 mark)
26. Which one of the following statements BEST describes the difference between enhancing and enforcing controls?
A. Enhancing internal controls involves adding more controls while enforcing controls involve integrating the internal controls with preventive and detective controls
B. Enhancing internal controls involves reorganising controls while enforcing controls involve integrating the internal controls with preventive and detective controls
C. Enhancing and enforcing controls involves the same exercise
D. Enhancing internal controls involves replacing controls while enforcing controls involve integrating the internal controls with preventive and detective controls (1 mark)
27. Which one of the following statements BEST describes an environment with zero tolerance for fraudulent behavior?
A. It is an environment with an internal control system that is integrated with preventive and detective controls
B. It is an environment with strong internal controls
C. It is an environment with effective internal controls
D. It is an environment with an internal control system integrated with preventive controls (1 mark)
28. Which one of the following statements is NOT accurate in regard to the statutory auditor’s responsibility for fraud?
A. International Standard on Auditing (ISA) 240 has put express responsibility on the auditors to detect fraud in the course of auditing financial statements
B. Auditors have responsibility for identifying fraud risks in all the processes
C. Auditors have a responsibility for identifying red flags of fraud in all the processes
D. International Standard on Auditing (ISA) 240 has put express responsibility on the auditors to collect evidence of any fraud detected during the audit of financial statements (1 mark)
29. Which one of the following statements is NOT accurate in regard to the pressure to commit fraud?
A. “I am in frustrated the personnel practices”
B. “I deserve more compensation for the work I am doing”
C. “I can override controls”
D. “I have an emergency; I have to help myself” (1 mark)
30. According to International Standard on Auditing (ISA) 240, the auditor is only concerned with fraud that
.
A. is perpetrated management and employees
B. causes misappropriation of assets
C. causes misstatement in the financial statements
D. causes material misstatement in the financial statements (1 mark)
31. Which one of the following statements is NOT accurate in regard to the justification corporates for their business misconduct?
A. The purpose for violations is to retain employees’ jobs
B. Compliance with government regulations are too expensive
C. The damage is shared among a large number of consumers
D. The purpose for violation is to have a competitive edge over the others (1 mark)
32. Which one of the following is NOT a core principle of corporate governance?
A. Responsibility
B. Integrity
C. Accountability
D. Transparency (1 mark)
33. Which one of the following parties has the overall responsibility for responding to fraudulent and corrupt activities?
A. The management
B. Internal auditors
C. External auditors
D. Audit committee (1 mark)
34. Which one of the following BEST describes the level of responsibility for the design, implementation and monitoring of the effectiveness of the internal controls?
A. Primary responsibility
B. Ultimate responsibility
C. Secondary responsibility
D. Overall responsibility (1 mark)
35. Which one of the following statements is ACCURATE in regard to risks and red flags of fraud?
A. An integrated internal control framework can mitigate all types of fraud risks, to the origination’s risk appetite level
B. Organisations should respond to red flags conducting a forensic audit
C. Organisations should respond to risks of fraud conducting a forensic audit
D. Organisations should respond to high risks of fraud conducting a fraud audit (1 mark)
36. Which one of the following BEST describes fraud risk management strategy that use threat of criminal sanctions?
A. Prevention
B. Detection
C. Investigation
D. Deterrence (1 mark)
37. Which one of the following risk factors is associated with putting too much trust in key employees?
A. Living beyond means
B. Overriding of controls
C. Rationalisation
D. Financial pressure (1 mark)
38. Which one of the following is the BEST method to control organisational fraudulent culture?
A. Putting strong controls in place
B. Establishing fraud hotlines
C. Increasing the perception of detection
D. Government intervention (1 mark)
39. Which one of the following statements is NOT accurate in regard to the control activities of an organisation?
A. Control activities set the ethical tone of an organisation
B. Control activities help in monitoring the effectiveness of the fraud controls
C. Control activities include preventive and detective controls
D. Control activities help in identifying and assessing an organisation’s fraud risks (1 mark)
40. Which one of the following statement is ACCURATE in regard to conviction of white-collar crime?
A. In white-collar crime cases like corruption, the higher the offender’s status, the more likely the individual will not be imprisoned
B. In white-collar crime cases, the higher an offender’s status, the more likely the individual will be convicted
C. In white-collar crime cases, the higher an offender’s status, the more likely the individual will be found guilty
D. In white-collar crime cases, the higher an offender’s status, the more likely the individual will be acquitted (1 mark)
41. Which one of the following COSO’s internal control-integrated framework is related to evaluation and communication of the COSO components?
A. Control environment
B. Control activities
C. Information and communication
D. Monitoring (1 mark)
42. Which one of the following statements is ACCURATE in regard to preventive controls?
A. Preventive controls alone cannot effectively reduce fraud
B. Preventive controls can effectively reduce fraud
C. Preventive controls are the same as basic controls
D. Preventive controls are a process of providing reasonable assurance (1 mark)
43. Which one of the following statements is ACCURATE in regard to eliminating fraud in an organisation?
A. An effective internal control system can eliminate fraud
B. An organisation with zero tolerance for fraudulent activities can eliminate fraud
C. Quality preventive and detective controls can eliminate fraud
D. An organisation with zero tolerance for fraudulent activities cannot eliminate fraud (1 mark)
44. Which one of the following statements is ACCURATE in regard to a fraud examiner expressing opinions and making recommendations?
A. A fraud examiner should not express an opinion of liability in a fraud investigation report
B. A fraud examiner should not make recommendations for sanctions
C. A fraud examiner can make recommendations on corrective measures to be put in place
D. A fraud examiner should not express any opinion at all (1 mark)
45. Which one of the following is ACCURATE in regard to embezzlers?
A. Embezzlers are usually trusted employees
B. Embezzlers have a sense of ownership
C. Embezzlers have prior criminal records
D. Embezzlers usually have previous history of dishonesty (1 mark)
46. The primary responsibility for monitoring and improving the compliance program rests with .
A. internal auditor
B. management
C. board of directors
D. compliance officer (1 mark)
47. Which one of the following BEST describes a soft control?
A. Proactive detection measures
B. Segregation of duties
C. Special audits
D. Physical controls (1 mark)
48. Which one of the following controls is both preventive and has control?
A. Segregation of duties
B. Fraud awareness training
C. Hiring policies
D. Fraud audits (1 mark)
49. Which one of the following statements is ACCURATE in regard to conflict of interest in professional engagements?
A. A Certified Fraud Examiner cannot accept an assignment where he has a conflict of interest
B. A Certified Fraud Examiner can accept an assignment where he has interest
C. An accountant can accept an assignment where he has a conflict of interest
D. Both an accountant and a fraud examiner can accept an assignment where he has conflict of interest as long as he discloses the interest (1 mark)
50. Which one of the following parties is responsible for the tone at the top?
A. The management
B. Internal auditors
C. External auditors
D. Board of directors (1 mark)
51. Which one of the following parties in an organisation has the final responsibility for compliance with laws and regulatory requirements?
A. Board
B. Management
C. Compliance officer
D. Internal auditor (1 mark)
52. Which one of the following parties in an organisation has responsibility for providing the third line of defense against fraud risks?
A. Management
B. Risk officer
C. Internal auditor
D. Heads of departments (1 mark)
53. Which one of the following statements is NOT accurate in regard to destructive behavior like fraudulent and corrupt activities?
A. Destructive behavior can be modified
B. It is not possible to change an individual’s destructive behavior
C. Destructive behavior can be modified through detective controls
D. It is the responsibility of the board and management to modify behavior at workplace (1 mark)
54. Which one of the following statements is ACCURATE in regard to absence of internal controls?
A. Absence of internal controls is not a red flag of fraud
B. Absence of internal controls is a root cause of fraud
C. Absence of internal controls is not a root cause of fraud
D. Absence of internal controls is a risk of fraud (1 mark)
55. Which one of the following principles of corporate governance is related to reporting structures within an organisation?
A. Transparency
B. Fairness
C. Responsibility
D. Accountability (1 mark)
56. Which one of the following parties has the primary responsibility for monitoring, compliance program?
A. Internal Auditor
B. Management
C. Board of Directors
D. Compliance Officer (1 mark)
57. Which one of the following is NOT a soft control that can enforce hard controls?
A. Surprise audits
B. Training and awareness
C. Analytical data review
D. Segregation of duties (1 mark)
58. Which one of the following BEST describes the type of control related to fraud awareness and training?
A. Preventive controls
B. Detective controls
C. Hard controls
D. Basic controls (1 mark)
59. Which one of the following parties has the primary responsibility for the design and implementation of fraud policies and strategy?
A. Board
B. Management
C. Internal auditor
D. Compliance officer (1 mark)
60. Which one of the following statements is MOST accurate in regard to enforcing of hard controls?
A. Enforcing hard controls involves adding preventive and detective controls to the hard controls
B. Enforcing hard controls involves adding basic controls to the hard controls
C. Enforcing hard controls involves reengineering the hard controls
D. Enforcing hard controls involves adding preventive controls to the hard controls (1 mark)
61. Which one of the following statements BEST describes board’s responsibility for fraud risk management program?
A. Conducting fraud risk assessment
B. Monitoring and proactively improving the fraud risk management program
C. Regularly updating the fraud risk management program
D. Overall responsibility for the fraud risk management program (1 mark)
62. Which one of the following is an element of an effective reporting program?
A. How to identify red flags and risks of fraud
B. How to report fraud
C. A third party fraud hotline
D. Sanctions for fraudulent activities (1 mark)
63. Which one of the following is statements is NOT accurate in regard to modifying desires at work place?
A. Desires can be modified through soft controls
B. Desires can be modified through punishment
C. Desires can be modified through training and awareness
D. Desires can be modified through control activities (1 mark)
64. Which one of the following is a procedure that helps to minimise the occurrence of fraud in an organisation?
A. Strong management oversight
B. Mandatory vacations
C. Fraud awareness and training
D. Fraud investigations (1 mark)
65. Which one of the following BEST describes the most effective procedure that organisations can put in place to mitigate fraud risks associated with employees’ greed?
A. Proactive forensic audits
B. Financial audits
C. Forensic audits
D. Special audits (1 mark)
66. Which one of the following is NOT accurate in regard to a comprehensive ethics program?
A. The ethics policy is part of the comprehensive ethics program
B. In developing the policy management should consider how various members of the organisation define success
C. In developing the policy management should consider the existing ethical tone set management
D. A comprehensive ethics program provides detective controls (1 mark)
67. Which one of the following code of ethics for fraud examiners is related to ensuring that engagements are completed with competence?
A. Maintaining confidentiality
B. Commitment to professionalism
C. Continuous learning
D. Loyalty (1 mark)
68. Which one of the following is NOT an objective of the fraud examiners code of ethics?
A. Provide more specific solutions to professional ethical dilemmas that might not be found under general ethical principles
B. Facilitate practical enforcement and profession-wide internal discipline
C. To serve as an ethical reference and benchmark
D. Provide specific solutions in all fraud investigation ethical issues (1 mark)
69. Which one of the following BEST describes an element of the fraud scale developed Dr. Steve Albrecht?
A. Rationalisation to perpetrate fraud
B. Pressure to achieve targets
C. Situational pressure
D. Social pressure (1 mark)
70. Which one of the following BEST describes an activity would demotivate individuals in an organisation from perpetrating fraudulent and corrupt activities?
A. Strong internal controls
B. Regular forensic audits
C. An anti-fraud policy
D. Fraud detection audits (1 mark)
71. Which one of the following statements is NOT accurate in regard to fraud related controls?
A. Fraud related controls must be well balanced for them be effective
B. Fraud related controls can help to detect fraud
C. Fraud related controls help to enhance existing controls
D. A well-balanced control system should have preventive controls (1 mark)
72. Which one of the following is statement is MOST accurate in regard to fraud related controls?
A. Fraud related controls are made up of a set of rules and procedures which in their aggregate encourage and discourage potential fraudsters from engaging in fraud
B. Fraud related control is a process that provide reasonable assurance in regard to fraud prevention
C. Fraud related controls can eliminate fraudulent activities
D. Fraud related control is a process that provide absolute assurance in regard to fraud prevention (1 mark)
73. Which one of the following statements is ACCURATE in regard to an auditor’s responsibility for fraud while auditing financial statements?
A. The auditor should assume that the financial statements are materially misrepresented
B. The auditor should not assume that the financial statements are materially misrepresented
C. The auditor should approach the audit from two perspectives, that fraud could have occurred or not
D. The auditor can only assume that the financial statements are materially misrepresented only if there is sufficient suspicion (1 mark)
74. Which one of the following statements is ACCURATE in regard to anti-fraud training?
A. Formal training delivered in a class or workshop is the most effective anti-fraud training
B. Cascading anti-fraud training can be the most effective method of anti-fraud training
C. A fraud training should not include what methods the organisation will implement to detect fraud
D. None of the above (1 mark)
75. Which one of the following fraud is associated with situational pressure?
A. Concealment of expenditure
B. Fraudulent disbursements
C. Conflict of interest
D. Inadequate disclosures (1 mark)
76. Which one of the following parties has the responsibility for coordinating fraud risk management in the organisation?
A. Risk owners
B. Chief Risk officer
C. Internal auditors
D. None of the above (1 mark)
77. Which one of the following is NOT one of the COSO fraud principles?
A. Fraud risk oversight
B. Information and communication
C. Control activities
D. Fraud risk management (1 mark)
78. Which one of the following statements is NOT accurate in regard to fraud prevention health check-up component?
A. Fraud prevention health check-up is a useful tool for identifying fraud in the organisation
B. Fraud prevention health check-up is a useful tool for identifying red flags of fraud in the organisation
C. Fraud prevention health check-up is a useful tool for identifying fraud risks in the organisation
D. Fraud prevention health check-up is a useful tool for identifying fraud prevention gaps in the organisation
(1 mark)
79. Which one of the following statement is ACCURATE in regard to strong internal controls?
A. For controls to be effective they must be strong
B. Strong controls are those that are well designed, implemented and enforced
C. Strong controls are preventive and detective
D. None of the above (1 mark)
80. Which one of the following statements is MOST accurate in to regard an organisation that is very corrupt and fraudulent?
A. The employees in the organisation have low personal integrity
B. The organisation does not have strong controls in place
C. The organisation has high tolerance for fraudulent and corrupt activities
D. The organisation has an appetite for fraud and corruption risks (1 mark)
81. Which one of the following statements is MOST accurate in regard an organisation that is very corrupt and fraudulent?
A. The employees in the organisation have low personal integrity
B. The organisation does not have strong controls in place
C. The organisation has high tolerance for fraudulent and corrupt activities
D. The organisation has an appetite for fraud and corruption risks (1 mark)
82. Which one of the following BEST describes the fraud risk, “there is a lot of discrimination in this organisation”?
A. Lack of loyalty
B. Sense of entitlement
C. Rationalisation
D. None of the above (1 mark)
83. Which one of the following is an effective method of sending a message across the organisation that condoning fraud will not be tolerated?
A. Conducting routine audits
B. Establishing an effective fraud reporting program
C. Training and awareness
D. Conducting forensic audits (1 mark)
84. Which one of the following statements is ACCURATE in regard to measuring of employee’s integrity?
A. Employees integrity is measured testing if they can engage in corrupt or fraudulent activities
B. Employees integrity is measured evaluating the culture of the organisation
C. Employees integrity is measured the number fraud incidences discovered
D. Employees integrity is measured the tone at the top (1 mark)
85. Which one of the following statements is NOT accurate in regard to increasing the perception of detection?
A. Increasing perception of detection is a fraud related control
B. Increasing perception of detection is a positive reinforcement measure
C. Increasing perception of detection involves putting control activities in place
D. Conducting fraud investigation is a method of increasing perception of detection (1 mark)
86. Which one of the following BEST describes the fraud risk associated with unfair personnel practices?
A. Lack of loyalty
B. Sense of entitlement
C. Rationalisation
D. Pressure (1 mark)
87. Which one of the following is an effective method of sending a message across the organisation that fraudulent activities will not be tolerated?
A. Conducting routine audits
B. Establishing an effective fraud reporting program
C. Conducting proactive forensic audits
D. Conducting forensic audits (1 mark)
88. Which one of the following statements is ACCURATE in regard to measuring management’s integrity?
A. Management’s integrity is measured employees’ perception of management’s integrity
B. Management’s integrity is measured the way management respond to fraudulent activities
C. Management’s integrity is measured their commitment to fraud risk management
D. Management’s integrity is measured testing if they can engage in fraud and corruption (1 mark)
89. Which one of the following is NOT an effective method of establishing a culture of ethics and integrity?
A. Designing and implementing preventive and detective controls
B. Designing and implementing hard controls
C. Consistent disciplinary measures
D. Establishing a comprehensive ethics program (1 mark)
90. Which one of the following statements is NOT accurate in regard to a forensic auditor and forensic audits?
A. A forensic auditor requires independence of mind and avoidance of conflict of interest
B. A forensic auditor should have very high level of integrity
C. A forensic auditor should not make any ethical decision that is not strictly under the code professional code of ethics
D. A forensic auditor must be able to subordinate personal desires (1 mark)
91. According to The Institute of Internal Auditors’ International Standards for the Professional Practice of Internal Auditing, the internal auditor should NOT do which one of the following?
A. Assess the risks of fraud
B. Conduct fraud audit
C. Evaluate the fraud risk management programs
D. Investigate frauds detected during the audit (1 mark)
92. Which one of the following BEST describes the justification to commit fraud?
A. “Management is not responding to reports of fraud”
B. “I need money to pay bills”
C. “Chances of being caught are very low”
D. “I have a fix I have no other way to solve the problem” (1 mark)
93. Which one of the following statements describes opportunity risk element of fraud?
A. “Management is engaging in conflict of interest”
B. “I have an emergency need”
C. “The board is not independent”
D. “I am need to be paid better” (1 mark)
94. Which one of the following statements is ACCURATE in regard to situational pressure?
A. “Management and the board are taking bribes, so it cannot be that bad?”
B. “I need money to solve my financial crisis”
C. “The company liquidity ratio is below the mandatory level”
D. “I have an emergency and I have no other way of solving the problem” (1 mark)
95. Which one of the following BEST describes tension between personal standards and organisational goals?
A. Ethical decision
B. Moral principles
C. Ethical values
D. Ethical culture (1 mark)
96. Which one of the following fraud principles is associated with assessing situations or circumstances that could significantly impact the internal control system?
A. Fraud risk assessment
B. Control environment
C. Control activities
D. Monitoring and evaluation (1 mark)
97. Which one of the following soft controls can prevent and proactively detect fraud?
A. Fraud risk assessment
B. Analytical data review
C. Proactive forensic audits
D. Surprise audits (1 mark)
98. Which one of the following fraud controls deter potential fraudster from engaging in fraudulent activities?
A. Segregation of duties
B. Fraud awareness training
C. Surprise audit
D. Code of ethics (1 mark)
99. Which one of the following statements BEST describes mitigation of fraud risks?
A. Mitigation of fraud risks involves strengthening of controls
B. Mitigation of fraud risks involves integrating internal controls with positive reinforcement measures
C. Mitigation of fraud risks involves reengineering of controls
D. Mitigation of fraud risks involves enhancing of controls (1 mark)
100. Which one of the following statements is NOT accurate in regard to social control in a workplace?
A. A workplace with no social control, is at very high risk of fraud
B. Social control involves condemnations for misconduct which deter individuals from engaging in destructive behavior
C. Employees at workplace fear condemnation from their colleagues and therefore deter individuals from perpetrating fraud
D. Social control cannot deter a potential fraudster from engaging in fraudulent activities (1 mark)
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