A mechanism by which a company is reimbursed for any loss that occurs when an employee commits fraud is called a:
A) segregation of duties
B) fidelity bond
C) personnel planning control
D) termination control plan

Question

Quizplus · Accepted Answer

A fidelity bond is an insurance policy that protects a company from financial losses due to fraudulent acts committed by employees. The bond typically covers losses resulting from theft, embezzlement, forgery, and other types of fraud. It is a mechanism by which a company is reimbursed for any loss that occurs when an employee commits fraud. The other options listed - segregation of duties, personnel planning control, and termination control plan - do not specifically address reimbursement for losses caused by employee fraud.

A Mechanism by Which a Company Is Reimbursed for Any