A code of ethics is an important element of a fraud prevention program.Which of the following would diminish the effectiveness of a company's code of conduct?
A) The establishment of a chief ethics officer.
B) The establishment of a hot line for reporting unethical behavior.
C) The violation of the code of ethics by senior management.
D) The posting of the code of ethics in the company workplace.

Question

Quizplus · Accepted Answer

If senior management violates the code of ethics, it sends a message that the code is not taken seriously or enforceable, weakening the impact of the entire program. The establishment of a chief ethics officer and hot line for reporting unethical behavior, as well as posting the code of ethics in the workplace, are all elements that can enhance the effectiveness of a code of conduct.

A Code of Ethics Is an Important Element of a Fraud