Final answer:
Fraud often arises not due to lack of controls but because of management overriding them, which is true. Individuals with authority can circumvent internal safeguards, posing ethical dilemmas for whistleblowers.
Step-by-step explanation:
The statement that fraud is often not a result of a lack of controls, but rather the overriding of existing controls by management and others, is True. While most organizations design internal controls to prevent and detect malfeasance, the issue often arises when individuals with sufficient authority within the organization circumvent these safeguards. This can occur when top-level executives or managers abuse their positions of trust to bypass or override controls for personal gain or to hide poor performance. The ethical dilemma that whistleblowers face is substantial; they must weigh the personal consequences of reporting against the potential benefits of exposing wrongdoing. The decision can be especially difficult when the whistleblower's livelihood and professional reputation are at stake.