True or False: An organization factor like an unclear structure of responsibility will reduce the risk of fraud.

An unclear structure of responsibility within an organization is likely to increase, rather than reduce, the risk of fraud. When responsibilities and reporting lines are not clearly defined, individuals may exploit ambiguities for personal gain. Without a clear understanding of who is accountable for specific tasks and decisions, oversight weakens, making it easier for fraudulent activities to go unnoticed or to be carried out with less fear of detection.

In organizations with well-defined structures of responsibility, there is usually better monitoring of activities, clearer expectations for conduct, and stronger accountability mechanisms. These factors are essential in deterring fraudulent behavior, as individuals are aware that their actions are subject to scrutiny and that there are consequences for misconduct. Thus, the statement that an unclear structure of responsibility will reduce the risk of fraud is false.