The proactive method of fraud detection is a six-step process. Which of the following is the correct process sequence?
A) Identify possible frauds that could exist; catalog possible fraud symptoms; understand the business; use technology to gather data about symptoms; automotive detection procedures; analyze results; and investigate symptoms
B) Catalog possible fraud symptoms; understand the business; identify possible frauds that could exist; analyze results; use technology to gather data about symptoms; and investigate symptoms
C) Understand the business; identify possible frauds that could exist; catalog possible fraud symptoms; investigate symptoms; use technology to gather data about symptoms; and analyze results
D) Understand the business; identify possible frauds that could exist; catalog possible fraud symptoms; use technology to gather data about symptoms; analyze results; and investigate symptoms

Question

Quizplus · Accepted Answer

The correct sequence for a proactive method of fraud detection starts with understanding the business to identify its unique vulnerabilities. Next, potential frauds are identified, followed by cataloging possible symptoms of these frauds. Technology is then used to gather data on these symptoms, which is analyzed to confirm suspicions. Finally, the symptoms are investigated to uncover any fraud, making option D the correct sequence.

The Proactive Method of Fraud Detection Is a Six-Step Process