Question

Which of the following factors generally results in a high-fraud environment?

a) hiring honest people
b) providing an EAP
c) autocratic management
d) both a and b

Answer 1

Autocratic management is the factor that typically results in a high-fraud environment because it can create an atmosphere that encourages unethical behavior. (option c)

Step-by-step explanation:

Autocratic management, characterized by centralized control and limited employee involvement in decision-making, often creates a high-fraud environment. In such settings, the lack of transparency and accountability can lead to a higher risk of fraudulent activities. This is because employees may feel disengaged or undervalued, fostering an environment where unethical behavior is more likely to occur. In contrast, options a and b, which involve hiring honest people and providing an Employee Assistance Program (EAP), contribute positively to a healthy work environment and are not typically associated with fostering fraud.

Autocratic management tends to create conditions conducive to fraud, making option c the correct choice in this context. Organizations need to adopt transparent and inclusive management practices to mitigate the risk of fraudulent activities within the workplace.