Which of the following is a difference between fraud examination and fraud detection?
A. Fraud examination is done before a fraud has been committed, whereas fraud detection is done after a fraud has been committed.
B. Fraud examination is the investigation specific allegations or suspicions of fraud, whereas fraud detection is the identification of an error or irregularity after it has occurred.
C. Fraud examination focuses on the time and duration of the fraud, whereas fraud detection focuses on the need or motive of the fraud.
D. Fraud examination adapts proactive strategies, whereas fraud detection adapts reactive strategies.
Answer:B
Which of the following is a difference between fraud examination and fraud detection?
A. Fraud examination is done before a fraud has been committed, whereas fraud detection is done after a fraud has been committed. B. Fraud examination is the investigation specific allegations or suspicions of fraud, whereas fraud detection is the identification of an error or irregularity after it has occurred. C. Fraud examination focuses on the time and duration of the fraud, whereas fraud detection focuses on the need or motive of the fraud. D. Fraud examination adapts proactive strategies, whereas fraud detection adapts reactive strategies.
Explanation: B) Fraud detection is simply the discovery of fraud. Detective procedures are designed to identify an error or irregularity after it has occurred. A fraud examination's purpose is to investigate specific allegations or suspicions of fraud.