Final answer:
Top level management can commit fraud due to control over data and influence over corporate governance, coupled with ineffective bureaucratic oversight and potential collusion between parties with shared interests.
Step-by-step explanation:
It is often easy for top level management to commit fraud because they are typically in positions of power that allow them control over the information and resources necessary to both perpetrate and conceal fraudulent activities. One reason is the phenomenon known as 'statistical fraud,' where research or data is manipulated or halted to support a desired hypothesis, avoiding outcomes that may contradict it. Another factor is the intuition that experts often have regarding the outcome of detailed analyses, which can lead to confirmation bias or the overlooking of data that does not fit predetermined conclusions.
Additionally, collusion between parties, such as factory owners, can be both profitable and easier to manage due to mutual interests. Moreover, bureaucratic oversight can be ineffective when internal staff, who are best positioned to identify wrongdoing, face adverse consequences for reporting such issues; this makes it challenging to counteract mismanagement or criminal behavior within organizations. A higher purpose or good can sometimes be used to justify fraudulent behavior, further complicating the detection and resolution of such actions.
Finally, corporate governance is sometimes insufficient because the systems and institutions in place to monitor top executives can fail, leading to a lack of transparency and accountability.