Undercover operations should be used only when:
A) large-scale fraud is likely and other investigation methods fail.
B) controls are made so strict that opportunities to commit fraud are virtually impossible.
C) the investigation cannot be kept a secret.
D) there is a need to develop theories about what kind of fraud has occurred.

Question

Quizplus · Accepted Answer

Undercover operations should be used only when there is a strong indication of large-scale fraud that cannot be uncovered through other investigation methods. It is not a step to be taken lightly and should only be used when necessary. Controls can help prevent fraud, but they cannot uncover it when it is occurring. Keeping investigations secret is ideal, but sometimes it is not possible. Developing theories about what kind of fraud has occurred is a necessary step in any investigation, but it is not a sufficient reason to conduct an undercover operation.

Undercover Operations Should Be Used Only When