What is the most likely outcome when a company demotes the perpetrator but allows him or her to go unprosecuted?
A) The company will avoid bad publicity.
B) The perpetrator may commit another fraud in the future.
C) The perpetrator will be saved from pain and embarrassment.
D) Management will send a signal that fraud will not be tolerated.

Question

Quizplus · Accepted Answer

Allowing a perpetrator to go unprosecuted does not hold them accountable for their actions and does not provide a deterrent for future fraudulent behavior. Therefore, there is a risk that the perpetrator may commit another fraud in the future. While demoting the perpetrator may send a signal that fraud will not be tolerated, it may not deter others from committing fraud if they believe they can get away with it. Additionally, avoiding bad publicity and saving the perpetrator from embarrassment are not appropriate reasons to refrain from prosecuting someone who has committed fraud.

What Is the Most Likely Outcome When a Company Demotes