A mid-sized technology company implementing job rotation in its finance department aims to mitigate fraud risk. Which outcome BEST demonstrates the success of this policy?

• A. A discrepancy in financial records is discovered by an employee who recently rotated into the finance department, leading to identification of fraudulent activities.
• B. Fraudulent activities are not detected.
• C. Rotation increases the time to complete tasks.
• D. Rotation reduces segregation of duties coverage.

Answer: (A)

Rotating staff through finance roles creates fresh eyes and interrupts long-standing routines, which enhances the ability to detect fraud. When someone who has recently moved into the department notices a discrepancy, it shows the rotation is functioning as a detective control—new perspectives are spotting irregularities that may have been hidden by familiarity. This demonstrates the policy’s effectiveness in uncovering fraudulent activity, not just preventing it.

Other outcomes described would indicate problems or drawbacks—fraud going undetected means the control isn’t working, longer task times reflect efficiency costs rather than effectiveness against fraud, and reduced segregation of duties coverage would actually weaken internal controls.