In which of the following ways can a whistleblower hotline serve as a prevent
A.
active control? 3
B.
Third parties who operate the hotline ensure anonymity for whistle blowers. D Whistleblower tips help discover wrongdoings and violations of the code of conduct.Potential perpetrators of fraud know that their actions can be reported easily.
C.
Better investigation protocols are triggered by the whistleblower hotline.
A whistleblower hotline serves as a preventive control by deterring potential perpetrators of fraud. Knowing that their actions can be reported easily and anonymously through the hotline creates a psychological barrier against committing fraud (Option C). This preventive aspect is supported by the IIA's guidance on fraud risk management, which highlights the role of whistleblower mechanisms in creating an environment where unethical behavior is less likely to occur due to the increased risk of detection and reporting.
IIA Practice Guide: Internal Auditing and Fraud
ACFE's Fraud Prevention Resources
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