Payroll fraud schemes are significantly more likely to be detected by:

Question

Options

• AMeasurement
• BAccident
• CPlanning
• DHypothesis

• A
  3% (1)
• B
  78% (29)
• C
  11% (4)
• D
  8% (3)

Explanation

Payroll fraud is most commonly uncovered by accident - a coworker stumbles upon a discrepancy, a manager notices an anomaly while reviewing unrelated records, or a tip comes in from someone who happened to observe suspicious behavior. Research from the ACFE consistently shows accidental discovery is a leading detection method because payroll fraudsters rely on routine and trust to avoid scrutiny, meaning formal processes often miss what an unexpected observation catches.

Why the distractors are wrong:

• A. Measurement - While audits and metrics can detect fraud, they are not the most likely method; many schemes are designed to survive routine measurement.
• C. Planning - Planned controls (audits, reconciliations) help prevent fraud but are less frequently credited as the initial detection source compared to accident.
• D. Hypothesis - Hypothesis-driven investigation happens after suspicion is raised, not as the primary trigger for discovery.

Memory tip: Think "oops, not ops" - payroll fraud is more often caught by an oops moment (accidental discovery) than by formal ops (planned controls or systematic measurement).

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