The last step in the "fraud savvy" model for dealing with fraud includes follow-up. What is a likely outcome when a company allows perpetrators to go un-prosecuted?
A) The company will avoid bad publicity
B) The perpetrator and others in the company will commit fraud again in the future
C) The perpetrator will be saved from pain and embarrassment and having learned his or her lesson will not commit fraud again
D) Management will send a signal that fraud will not be tolerated

Question

Quizplus · Accepted Answer

A: Because fraud is so common, bad publicity is not a result of fraud prosecution. Bad publicity may result from fraud that occurs from a perpetrator that was not prosecuted.
C: The perpetrator will commit fraud again
D: Management will send a signal that they do not deal harshly with fraud.

The Last Step in the "Fraud Savvy" Model for Dealing