Final answer:
The statement is true. Failure to adequately investigate employee fraud can violate legal and regulatory requirements.
Step-by-step explanation:
The statement is true. The failure to adequately investigate an allegation of employee fraud can indeed be a violation of legal and regulatory requirements. Companies are required by law and regulatory bodies to thoroughly investigate allegations of fraud and take appropriate action to address and prevent such misconduct.
For example, in the United States, the Sarbanes-Oxley Act of 2002 mandates that companies establish internal controls and procedures for handling reported allegations of fraud. Failure to comply with these requirements can lead to severe consequences, including legal penalties and damage to the company's reputation.