Which of the following was not a finding of the ACFE 2014 Report to the Nation on Occupational Fraud?

• A. Fraud is more likely to be detected by tips than any other way
• B. Frauds lasted a medium of 18 months before detection
• C. Asset misappropriation schemes was the most common type of occupational fraud
• D. External auditors discover about 10 percent of the frauds

Answer: (D)

The question tests your understanding of how fraud is typically detected and categorized in the ACFE 2014 Report to the Nation on Occupational Fraud. The report consistently shows that tips are the most common detection method, not audits, and that frauds often go undetected for a substantial period, with a median around 18 months. It also finds that asset misappropriation is the most frequent type of occupational fraud.

External auditors do play a role, but the report places them as a relatively smaller detection channel compared with tips and internal sources, usually well under ten percent. Therefore, the statement that external auditors discover about 10 percent of the frauds is not aligned with the report’s findings, making it the incorrect choice. The other points—tips as the primary detection method, the 18-month median duration, and asset misappropriation being the most common type—are consistent with the report.