Question

Which of the following personnel and operating policies contribute to high-fraud environments?

a) management by crisis
b) rigid rules
c) high employee lifestyle expectations
d) poor promotion opportunities
e) all of the above

Answer 1

Rigid rules, high employee lifestyle expectations, and poor promotion opportunities contribute to high-fraud environments. Hence, b), c) and d) are correct.

Step-by-step explanation:

The personnel and operating policies that contribute to high-fraud environments include rigid rules, high employee lifestyle expectations, and poor promotion opportunities. Management by crisis can also contribute to a high-fraud environment because it may lead to a lack of oversight and accountability.

When there are strict rules and regulations, employees may find ways to bypass them and engage in fraudulent activities. Similarly, if employees feel that they are not being promoted or rewarded for their hard work, they may be more inclined to engage in fraudulent behavior.

Additionally, when there are high lifestyle expectations and pressure to maintain a certain image, employees may resort to fraudulent activities to meet those expectations.