CFE – Fraud Prevention and Deterrence — Question 70

According to Silk and Vogel's research, which of the following is one of the ways that businesses rationalize illegal conduct?

Answer options

• A. Violations are caused by innocent errors in judgement rather than economic necessity.
• B. Corporate violations that involve large sums of money are often spread among so many organizations that each gains very little individually.
• C. Government regulation is unnecessary because the matters being regulated are unimportant.
• D. Government regulations are justified because the additional costs of regulations and bureaucratic procedures increase government profits.

Correct answer: B

Explanation

The correct answer, B, highlights how corporations may justify illegal actions by claiming that the financial impact is diluted across multiple organizations, making it seem less significant. Options A and C incorrectly attribute the causes of violations to innocent mistakes and insignificance, respectively, while option D misrepresents the intention behind regulations by suggesting they are designed to enhance government profits.