Why are tip hotlines or other tip reporting mechanisms important to formally have in place in a business?
A) Nearly 50% of all fraud detection occurs through tip hotlines.
B) Forensic accounting methods lack the ability to detect most fraud.
C) Civil court rules of evidence do not allow charges to be brought against someone unless it is reported first.
D) .Over 75% of all fraud detection occurs through tip hotlines.

Question

Quizplus · Accepted Answer

Tip hotlines are crucial in businesses because they are a significant source of fraud detection. Studies and reports, such as those from the Association of Certified Fraud Examiners (ACFE), have shown that a large percentage of fraud is detected through tips, with hotlines being a common method for reporting suspicious activity. This makes them an essential tool for organizations in their efforts to uncover and address fraudulent activities.

Why Are Tip Hotlines or Other Tip Reporting Mechanisms Important