What is a primary reason for conducting background checks on employees?

Prepare for the ACFE Certified Fraud Examiner CFE Exam. Study with multiple-choice questions, each with hints and explanations. Boost your fraud prevention skills and excel in your exam!

Conducting background checks on employees is vital in identifying potential financial theft risks. By reviewing an individual's history, including criminal records, prior employment, and financial behaviors, organizations can uncover any patterns or indicators that may suggest a propensity for dishonest behavior. This proactive measure helps employers mitigate the risk of fraud before it occurs, protecting both their financial assets and maintaining a safe work environment.

While the other options touch on important aspects of employee management, they do not directly address the primary focus of background checks in relation to fraud prevention. For example, ensuring alignment with company values is more related to the cultural fit of an employee, and preventing workplace harassment typically involves different procedures that focus on interpersonal behaviors rather than financial assessments. Although future compliance and workplace dynamics are significant considerations for an organization, the core objective of background checks is to fortify the organization against potential financial misconduct.

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