Which of the following is NOT listed as a cause of fraud?

• A. Low Staff Morale
• B. Lack of Monitoring and control systems
• C. High staff morale
• D. Dominance of management by 1 person or small group

Answer: (B)

Fraud occurs when three elements line up: motive or pressure, opportunity to commit fraud, and rationalization. Factors that contribute to fraud are typically those that create pressure or increase opportunity. Dominance of management by a single person or a small group creates opportunity by weakening checks and enabling overrides of controls. Low staff morale is a form of pressure that can push someone toward fraudulent acts. A high level of staff morale, in contrast, reduces the likelihood of fraud rather than causing it.

Lack of Monitoring and control systems is commonly discussed as a weakness that increases opportunity, but in this phrasing it’s treated as a control deficiency rather than a direct cause. That’s why it isn’t listed as a cause in this context, making it the best choice for not being a listed cause.

So the factor described as lacking monitoring and control systems is viewed here as an enabling weakness rather than a direct cause, which is why it’s identified as not being listed as a cause.