Which of the following environments will be LEAST conducive to fraud?
a. Perceived inequalities in the organization and inadequate pay
b. Unreasonable budget expectations
c. Proactive management
d. High employee turnover
c
FEEDBACK: a. Incorrect. This can lead to disgruntled employees who develop motives to commit fraud.
b. Incorrect. This can lead to disgruntled employees who develop motives to commit fraud.
c. Correct. If management is proactive, there will be an open line of communication between management and the employees and most of the employee frustration will be resolved before someone decides to commit fraud.
d. Incorrect. This can lead to disgruntled employees who develop motives to commit fraud.
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