Which of the following is a plausible but not listed measure to prevent fraud?

• A. Increase the perception of detection
• B. Centralize payroll to reduce risk
• C. Two-person transaction controls
• D. Whistleblower hotline

Answer: (A)

Deterrence is a fraud prevention approach that relies on the belief that fraudulent acts will be detected and punished. Increasing the perception of detection is a plausible but not listed measure because it changes behavior through psychology rather than adding a new formal control: it signals that monitoring is active, with audits, reviews, and reporting systems that make detection seem likely. When people think they are likely to be caught, the perceived risk of getting caught rises, reducing the temptation to commit fraud even if specific procedures aren’t altered. The other options are concrete controls that directly reduce opportunities or improve actual detection—centralizing payroll limits access points, two-person transaction controls enforce separation of duties, and a whistleblower hotline provides a channel for reporting. Because the question asks for a plausible but not listed measure, the idea of enhancing detection awareness best fits, highlighting how deterrence through visibility and culture can prevent fraud.