CFE – Fraud Prevention and Deterrence — Question 69

Which of the following factors increases an organization's inherent inclination toward committing crime according to Diane Vaughan's research?

Answer options

• A. Management seeks diversity in attitudes and perspectives when hiring employees.
• B. Management separates employee performance goals from company performance goals.
• C. Management rewards employees who challenge how the company functions.
• D. Management encourages employee loyalty through social functions.

Correct answer: D

Explanation

The correct answer, D, highlights that fostering employee loyalty through social functions can create an environment where unethical behavior is overlooked. In contrast, options A, B, and C promote diversity, separation of goals, and questioning of practices, which can help mitigate the risk of criminal activities rather than increase it.